The Global Performance of Manufacturing Index’s (PMI) downturn intensified in November, hitting a 29-month low as companies face weaker intakes of new business, slower international trade flows, and continued high costs.
The J.P. Morgan Global Manufacturing PMI slipped further into contraction territory at 48.8 points in November, down from 49.4 in October.
The PMI has stood below the neutral mark of 50.0 in each of the past three months. The report also revealed a bleak outlook amid subdued business optimism about the future and rising finished goods holdings.
Additionally, manufacturing employment fell, albeit only slightly, for the first time since October 2020.
Twenty-three out of 31 nations for which data were available had PMI readings indicating contraction, including China, the United States, Eurozone, and Japan.
November’s survey also found a number of potential headwinds for the sector during coming months.
New order intakes fell for the fifth consecutive month and to the greatest extent in two-and-a-half years.
International trade also retreated further, posting a decline for the ninth successive month.
Data also revealed that output declined across the consumer, intermediate, and investment goods industries.
Intermediate goods saw a solid drop in production volumes, making it the weakest performer among the manufacturing indices.
The downturns in consumer and investment goods producers were both mild in comparison.
“The November PMIs point to an intensification of the global manufacturing downturn, as the output index fell to a new low since June 2020. The decline in output was accompanied by a tick down in new orders as rising inventories have put the brakes on production. There was some positive news on the price front, however, as price pressures continued to ease,” J.P. Morgan’s global economist Bennett Parish noted.
“The delivery times index also improved, consistent with the signal from high-frequency shipping cost indicators that show supply chain conditions normalizing,” Parish said.
