Global manufacturing activity strengthened in September, with output and new orders increasing at their fastest rates in several years, according to the J.P.Morgan Global Manufacturing PMI®.
The PMI, produced by J.P.Morgan and S&P Global Market Intelligence in association with ISM and IFPSM, rose to 53.0 in September from 52.3 in August, marking its highest level since February 2022. The index has remained above the 50.0 level that separates expansion from contraction for 14 consecutive months.
J.P.Morgan said manufacturing operating conditions improved to their greatest extent in more than four-and-a-half years, supported by increases in output, new orders and international trade. All five PMI sub-components indicated improved operating conditions for the third consecutive month.
Manufacturing production increased at its fastest pace since July 2021, while new business recorded its strongest growth in 55 months. Growth was reported across consumer, intermediate and investment goods, with output and new orders increasing in each category.
Thailand recorded the strongest production growth in September, while particularly strong expansions were also reported in India, Ireland, the Netherlands, Taiwan and the US. Japan recorded more modest growth, although the increase was among its largest in 12 years. Mainland China also recorded one of its strongest rates of growth since the COVID-19 pandemic.
New export business increased for a second consecutive month and at its fastest pace in more than five years. The survey also recorded further manufacturing job creation, with staffing levels rising for a third consecutive month and the rate of employment growth reaching a 52-month high.
J.P.Morgan said demand for manufactured goods has improved during 2026, partly reflecting increased spending on AI infrastructure and defence equipment. It also noted that inventory building linked to price and supply concerns arising from conflicts, including the war in the Middle East, had contributed to demand.
However, the stronger manufacturing performance was accompanied by renewed inflationary pressure. Input costs and factory-gate selling prices both increased at faster rates after easing from conflict-driven peaks earlier in the year.
“The J.P. Morgan Global Manufacturing Output PMI continues to impress,” said Maia Crook, global economist at J.P.Morgan. “This upbeat activity news is coupled with still-sticky input and output price indicators,” she said, citing supply disruptions, higher transport costs and elevated energy prices as factors affecting input costs.
The Global Manufacturing PMI’s September results therefore pointed to stronger production, demand and employment alongside continued cost pressures across the sector.
