Global manufacturing activity gained momentum in August, with production, new orders and employment all expanding at faster rates, according to the latest J.P. Morgan Global Manufacturing PMI compiled by S&P Global Market Intelligence.
The headline index rose to a three-month high of 52.3 in August from 52.1 in July, remaining above the neutral 50.0 mark for the 13th consecutive month. The PMI is produced by J.P. Morgan and S&P Global Market Intelligence in association with ISM and IFPSM.
Manufacturing production increased across the consumer, intermediate and investment goods sectors, although the acceleration was mainly driven by consumer goods. Output expanded in 20 of the 32 countries for which August data were available.
Among the larger industrial regions covered, manufacturing growth was reported in mainland China, the US, the euro area, Japan, the UK, India and South Korea. Output contracted in countries including Brazil, Italy, Spain, Poland, Mexico and Russia.
New business growth also accelerated to a three-month high, while new export orders rose for the first time since April and at the fastest pace in six months. However, trade volumes declined across the US, Canada and Mexico.
The continued manufacturing expansion supported employment growth, which reached its fastest pace in three years, while business optimism rose to its joint-highest level since February.
The survey also pointed to ongoing cost and supply chain pressures, although both showed signs of easing. Input price inflation slowed to a six-month low, while factory gate selling price inflation also eased to its lowest level in six months.
Maia Crook, global economist at J.P. Morgan, said the August results pointed to continued strength in global industry.
“The J.P. Morgan global manufacturing output PMI rose 0.3-point in August, recovering to a level that suggests ongoing strength in global industry,” Crook said.
“Forward-looking indexes were similarly constructive. New orders moved back up to approach its recent high, suggesting an ongoing lift in demand, and the future output PMI rebounded to its May level.”
Crook added that price pressures were moderating despite elevated petro-based product prices, with purchase price inflation easing to a six-month low.
