Global manufacturing continues to edge marginally higher each month, at 50.9 on the global PMI in June versus a revised 51.0 in May. This is the fifth straight plus 50 score though this indicator has been holding in a very narrow range roughly between 49 and 51 for the last two years.

New orders slowed 4 tenths but are still above 50 at 50.8 which points to a similar headline reading for July. But the rise is centered in domestic demand as foreign orders fell 1.1 points to a slightly contractionary 49.3. This may be holding down the sample's optimism as expectations for future output fell a noticeable 2.4 points to a still positive 59.6.

Among other details, employment edged 2 tenths higher to 50.5 while output slowed 5 tenths but remains comparatively solid at 52.3. Input and output prices both moved slightly higher but remain contained at 55.3 and 52.3, respectively.

India continues to lead the country data with China and the USA roughly in the middle and with the Eurozone near the bottom and Germany remaining once again at the very bottom.

J.P. Morgan Global Manufacturing PMI gives an overview of the global manufacturing sector. It is based on monthly surveys of over 10,000 purchasing executives from 32 of the world’s leading economies, including the U.S., Japan, Germany, France and China which together account for an estimated 89 percent of global manufacturing output. It reflects changes in global output, employment, new orders and prices. The Global Manufacturing PMI is seasonally adjusted at the national level to control for varying seasonal patterns in each country and is produced by J.P. Morgan and Markit Economics in association with ISM and the International Federation of Purchasing and supply Management (IFPSM).

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. The J.P. Morgan Global Manufacturing PMI provides advance insight into the global manufacturing sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of global markets. The stock market likes to see healthy economic growth because that generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.

The J.P. Morgan Global Manufacturing PMI data give a detailed look at the manufacturing sector including the pace of manufacturing growth and the direction of growth for this sector. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. In addition, its sub-indexes provide a picture of output, employment, new orders and prices.