Global manufacturing activity continued to expand in July, although the pace of improvement eased for a second straight month, according to the latest J.P.Morgan Global Manufacturing PMI®, which showed sustained growth in production, new orders and employment while highlighting ongoing uncertainty surrounding the sector.
The J.P.Morgan Global Manufacturing PMI® — compiled by J.P.Morgan and S&P Global Market Intelligence in association with ISM and IFPSM — slipped to 52.1 in July from 52.2 in June.
While marking its lowest reading since March, the index remained above the neutral 50.0 threshold for a twelfth consecutive month, signalling continued expansion in global manufacturing.
According to the report, all five PMI sub-components indicated improving operating conditions during July. Manufacturing output and new orders extended their current growth sequences to 12 and seven consecutive months respectively, although both measures expanded at their slowest pace in four months.
Production increased across the consumer, intermediate and investment goods sectors. Output rose in mainland China, the United States, Japan and the euro area, while manufacturing activity contracted in France, Spain, Poland, Mexico, Turkey, Myanmar, Kazakhstan and Brazil.
The report also found that global manufacturing employment recorded its fastest increase since June 2024, supported by higher production, stronger new orders and continued growth in backlogs of work. Employment gains were reported in mainland China, the United States and Japan, while staffing levels continued to decline across the euro area on average.
Meanwhile, supply chain pressures and inflationary trends continued to ease. Supplier delivery times lengthened for a 26th consecutive month, but at the slowest rate in four months, while increases in both input costs and selling prices moderated to their weakest pace in several months.
Despite these improvements, the report said business confidence remained subdued. Geopolitical and economic uncertainty, including concerns over tariffs, conflicts and energy prices, continued to weigh on demand and present downside risks for manufacturing production. New export orders also stabilised after contracting in May and June.
Alex Gallin, Global Economist at J.P.Morgan, said the latest data pointed to continued expansion despite signs of moderation.
“The J.P. Morgan global manufacturing output PMI moderated 0.3-point to 52.7 in July, a second consecutive decline from its May high. Nevertheless, the index still suggests a solid pace of expansion in global manufacturing,” Gallin said.
He added that forward-looking indicators presented a mixed picture.
“The future output PMI ticked up from an eight-month low, while the new orders PMI lost further ground from its recent peak. Both the input and output price PMIs continued to fall but remain above their pre-conflict levels.”
The report also noted that purchasing activity expanded for a seventh consecutive month, albeit at the slowest pace over that period. Stocks of purchased inputs continued to rise, while manufacturers made a further modest reduction in finished goods inventories.
