The global manufacturing sector made a positive start to 2018, with rates of growth in output and new orders staying close to highs reached before the turn of the year.
At 54.4 in January, the J.P.Morgan Global Manufacturing Purchasing Managers’ Index (PMI) – a composite index produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – was only a tick below December’s near seven-year record.
The euro area remained the principal growth engine of global manufacturing expansion during January. Although the eurozone PMI slipped to a three-month low, from December’s record high, solid expansions were still registered across all of the nations within the currency union covered by the survey.
The US PMI improved to a 34-month high. Accelerations were signalled in Mexico and Canada, while Brazil saw further expansion (albeit slower than December). Asia manufacturing also fared well, with rates of expansion picking up in Japan, Taiwan, Vietnam, Thailand and Myanmar, and holding steady in China. South Korea returned to growth following a minor contraction at the end of 2017.
With business confidence still robust and further job creation reported, the sector is on course to sustain its current solid pace of expansion into the coming months.
Source: Markit economics, https://www.markiteconomics.com