Global manufacturing falls to 48.8, 0.7 points less than August (49.5). This is the third consecutive month that global manufacturing fails to meet the 50-growth threshold.

This contraction was led by a decline in output (49.4), new orders (47.3), employment (48.9) and stocks of purchases, all of which fell below the 50-growth threshold.

Among the major economies, the Eurozone saw the steepest fall in production, led by Germany. Output continued to decline in the US and Japan recorded a slight decline.

In China, production barely grew. Broadly stagnating for a third successive month. A reduced expansion rate was seen in the rest of Asia. India, Brazil, Spain and the UK were among the fastest growing of the larger nations covered by the report.

Confidence dipped to a 22-month low in September. However, price inflationary pressures eased. Rates of increase in both input costs and selling prices were the mildest registered since March 2024.

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.