The global manufacturing sector has seen its strongest performance since June 2022, pushed by higher rates in output and new orders.
The J.P. Morgan Global Manufacturing PMI reached a 44-month high of 51.9 in February – a significant increase from January’s 50.9 result. This marks the seventh consecutive month the index stayed above the critical 50.0 mark, which separates growth from contraction.
Maia Crook, global economist at J.P. Morgan, said the PMI rating now sits at its highest level since 2021, showing building momentum in the global manufacturing sector.
Consumer, intermediate, and investment goods sectors all saw growth in February. The intermediate and investment goods sectors improved to their highest rates in 55 months and six months, respectively, while consumer goods maintained their strong performance from January.
Asian economies dominated the growth rankings. India led the pack, followed by Vietnam, Thailand, the Philippines, and Taiwan. The Philippines saw its strongest growth since November 2018, while Taiwan recorded its best performance since July 2021.
Japan, mainland China, Vietnam, and the UK all reached their highest growth rates in recent years. The euro area also posted its second-strongest expansion in almost four years.
In contrast, North American manufacturing slowed. The US growth rate dropped to a five-month low, Canada showed no growth, and Mexico continued its production decline for the 20th consecutive month.
“The gain was broadly based outside of the US – where cold weather effects were a likely temporary drag – with a particularly large China jump,” Crook noted.
“Forward-looking indicators were similarly upbeat, with the new orders index rebounding to a 48-month high and business sentiment (as measured by the future output PMI) now back above its pre-Liberation Day level. A tick down in the employment PMI was the only notable disappointment in an otherwise encouraging report,” the economist explained.
Employment rose for the second month in a row, albeit minimally. Manufacturers also reported a 39-month-high cost increase, but the price increase remained at a slightly slower pace. Supply chains continued to face challenges, with delivery times increasing for the 21st month in a row.
