Global manufacturing experiences moderate growth in PMI: JP Morgan
GLOBAL manufacturing sector has increased for its seventh successive month in May although shows promise for continuing growth if moderate, according to JP Morgan Global Manufacturing PMI (Purchasing Managers Index).
The PMI increased from 50.4 to 50.6 in May due to marginal growth in the manufacturing sector with production output up in the larger nations included in the survey of US, China, Japan, Germany, the UK, South Korea and Brazil. All readings above 50 indicates the expansion of economy, a number less a sign of contraction in manufacturing.
Although growth is sluggish, the rise in new orders for the fifth consecutive month in May might indicate further growth during the remainder of the year, said JP Morgan's director of global communications David Hensley cited a report from UK's Transport Intelligence.
"The good news is that the survey's leading indicators of new orders and finished goods inventory are moving in a constructive fashion, hinting that output growth might pick up into midyear. These indicators need to be watched carefully in the next few months," he said of output noted in the US, China, Japan, Germany, the UK, South Korea and Brazil.
The Eurozone continues to be battered by contraction in a downturn period of two years with little new business. Asia experienced slowdowns in new business with China, Taiwan and Vietnam slipping back into contraction. India saw some respite in a slight increase. According to the report, overall trend in new export business remained at near-stagnant.
Price pressures were at subdued levels while average purchasing costs remained constant from month previous attributed to lower input prices in China and with Taiwan and Eurozone offsetting increases in US, Brazil and Russia.
The decreased manufacturer charges in Asia created a decline in average output prices for the global manufacturing sector for the second month in a row.
Employment in the sector increased for the sixth month in succession although marginal it was across the board in the US, Japan, the UK, Czech Republic, Canada, Mexico, India, South Korea, Turkey and Indonesia.
GLOBAL manufacturing sector has increased for its seventh successive month in May although shows promise for continuing growth if moderate, according to JP Morgan Global Manufacturing PMI (Purchasing Managers Index).
The PMI increased from 50.4 to 50.6 in May due to marginal growth in the manufacturing sector with production output up in the larger nations included in the survey of US, China, Japan, Germany, the UK, South Korea and Brazil. All readings above 50 indicates the expansion of economy, a number less a sign of contraction in manufacturing.
Although growth is sluggish, the rise in new orders for the fifth consecutive month in May might indicate further growth during the remainder of the year, said JP Morgan's director of global communications David Hensley cited a report from UK's Transport Intelligence.
"The good news is that the survey's leading indicators of new orders and finished goods inventory are moving in a constructive fashion, hinting that output growth might pick up into midyear. These indicators need to be watched carefully in the next few months," he said of output noted in the US, China, Japan, Germany, the UK, South Korea and Brazil.
The Eurozone continues to be battered by contraction in a downturn period of two years with little new business. Asia experienced slowdowns in new business with China, Taiwan and Vietnam slipping back into contraction. India saw some respite in a slight increase. According to the report, overall trend in new export business remained at near-stagnant.
Price pressures were at subdued levels while average purchasing costs remained constant from month previous attributed to lower input prices in China and with Taiwan and Eurozone offsetting increases in US, Brazil and Russia.
The decreased manufacturer charges in Asia created a decline in average output prices for the global manufacturing sector for the second month in a row.
Employment in the sector increased for the sixth month in succession although marginal it was across the board in the US, Japan, the UK, Czech Republic, Canada, Mexico, India, South Korea, Turkey and Indonesia.