The J.P.Morgan / S&P Global Market Global Manufacturing PMI was published overnight Tuesday, coming in at 48.8 in September.
- Output, new orders, employment, and stocks of purchases all fell, contributing to the contraction.
- Suppliers' delivery times were the only component making a positive contribution.
- Manufacturing production decreased for the first time in 2024 due to reduced new business.
- New orders and new export orders both experienced significant contractions.
- The intermediate and investment goods sectors saw a decline in production, while consumer goods had minimal growth.
Regional Performance:
- The eurozone, led by Germany, saw the sharpest production decline.
- Output contracted further in the US, with marginal declines in Japan and stagnation in mainland China.
- India, Brazil, Spain, and the UK showed relatively stronger growth among major economies.
Employment and Purchasing Activity:
- Employment levels declined for the second month in a row, marking the largest drop since December 2023.
- Purchasing activity and input stocks were reduced as manufacturers attempted to minimize costs.
Business Optimism and Price Inflation:
- Business optimism fell to a 22-month low, with declines across all sub-industries.
- Input costs and selling prices rose at slower rates, marking the mildest increases since March.
Comment from J.P.Morgan:
- Bennett Parrish, Global Economist at J.P.Morgan, noted that the global manufacturing output PMI showed a weakening trend, with a significant drop to a nine-month low of 49.4.
