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Global Manufacturing PMI

J.P.Morgan - IHS Markit

  Last update  
  4 Jun 2020  
  Marked downturn in global manufacturing continues in May, although rate of contraction eases since April  

Key findings

  • Output and new orders down sharply again
  • International trade flows suffer steep drop
  • Marked cutbacks in employment and purchasing

The global manufacturing downturn remained substantial during May, as the coronavirus disease 2019 (COVID-19) pandemic caused further disruption to industry and its supply chains. Although rates of contraction in output, new orders and employment all eased, they were still among the steepest registered during the 22-year survey history.

The J.P.Morgan Global Manufacturing PMI™ – a composite index produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – posted 42.4 in May, up from 39.6 in April. Rates of contraction for many of the survey variables, including output, new orders, new export business, quantity of purchases and future output remained at depths unseen outside of either the current pandemic or the global financial crisis of 08/09 (albeit less marked than April).

Please note that due to later release dates, final numbers for Indonesia, Ireland and the Netherlands were not available to include in the Global Manufacturing PMI calculation.

Global manufacturing production fell for the fourth straight month in May. The downturn remained widespread, with substantial decreases across the consumer, intermediate and investment goods sub-industries. Of the 28 nations for which May data were available, all except China (where growth was the highest since January 2011) saw manufacturing output contract. That said, only two (Japan and Australia) saw their rates of decline accelerate over the month.

Despite easing since April, the rate of contraction in new order intakes was the second-fastest since the 2008/09 global financial crisis. The decline was more widespread by nation than for output, however, with all 28 nations seeing reductions. Disruption to international trade flows also remained. New export business decreased to the third-greatest extent in the survey history, beaten only by the contractions in April 2020 (record drop) and December 2008.

The ongoing marked downturn in global manufacturing activity led to sharp cutbacks in employment, purchasing and stock holdings during May. Supply chains also remained under severe stress, with average vendor lead times lengthening to one of the greatest extents in the survey history (albeit the weakest since February).

Employment fell at the second-quickest pace since mid-2009, with losses in almost all of the nations covered (no change in Kazakhstan being the exception). Among the world's major industrial regions, marked rates of reduction were seen in the US, the euro area, India, South Korea, Brazil and the UK. Japan and China only registered marginal job cuts.

Business sentiment remained subdued by the historical standards of the survey in May. Confidence was at its joint second-lowest level since trends in expected future activity were first tracked in July 2012. Companies anticipate a marginal increase in output over the next 12 months, a mild improvement on the contraction forecast in the April survey.

Input costs and output charges both decreased again during May. However, rates of decline were only moderate and weaker than those signalled in April.

  Country/Area Index Source Link  
  Global J.P.Morgan Global Manufacturing PMI IHS Markit  


Last updated: Jun 19, 2018

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Last update 2 Jul 2020
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   Source: NEVI Netherlands Manufacturing PMI   -  IHS Markit


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