Global manufacturing PMI rose to 50.0, up 0.6 points from October's 49.4. This signals no change in operating conditions; however, regional differences remain apparent.

There was slight growth in new orders (50.1) and manufacturing output (50.4). This is offset by declines in new export orders (48.6) and employment (49.0) and stocks of purchase. This mixed report is also reflected regionally with mainland China reaching a 5-month high (51.5) and the rest of Asia where PMI rose to 51.1 on average versus the eurozone area where contraction deepened (45.2). US (49.7) also contracted, though only slightly.

India saw the strongest growth, followed by Spain. Strong export gains were also seen in Taiwan, Korea and Russia. Mainland China saw improved export performance, in contrast to the US and Japan which both saw overseas demand decline yet again. The bottom of the export rankings was dominated by European economies, with France reporting the sharpest decline.

Business optimism improved to a 6-month high. Price pressures increased in November, signaled by upticks in both input costs and selling prices.

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.