Flash manufacturing Purchasing Managers’ Index (PMI) readings for November are out today, presenting a mixed global picture. The UK posted an improved reading from last month, a trend mirrored in Australia and Japan. This contrasts with the Eurozone, where the first reports from Germany and France both show declines.
The UK flash manufacturing PMI rose to a 14-month high of 50.2 in November, returning to expansion after October’s 49.7. Manufacturers reported their first increase in total new orders in more than a year, supporting a continued – though still modest – rise in goods output which strengthened following October’s first uptick in a year. Survey data pointed to firmer domestic demand and a softer fall in export orders. While firms continued to highlight weak global demand and rising overseas competition, some noted better sales from Asia-Pacific and the Middle East.
Private-sector employment in the UK fell at the fastest rate in four months, with both services and manufacturing cutting staff more quickly than in the prior survey period. The decline was particularly pronounced in services.
In Europe, the flash Eurozone manufacturing PMI slipped back into contraction at 49.7, down from October’s neutral 50.0 and marking a five-month low. Weak regional demand was evident in a slight fall in new orders. Country-level data are limited so far to France and Germany, both of which saw declines. French manufacturing PMI dropped to a nine-month low of 47.8 from 48.8, with output falling at the fastest pace since February, though confidence rose sharply to its highest since June. Germany’s PMI eased to 48.4 – a six-month low – from 49.6. Production edged higher, but new orders fell sharply after stabilising in October.
Across Asia, three countries released flash manufacturing PMIs, each showing distinct trends. Australia returned to expansion with a reading of 51.6 (up from 49.7), supported by new product launches and stronger business development activity. Japan’s PMI also improved but remained in contraction, rising from 48.2 to 48.8 as output declines moderated. Both manufacturers and service providers reported softer foreign demand, with composite new export orders falling at their fastest pace in three months. India once again posted the strongest flash PMI globally at 57.4, though down from October’s 59.2, reflecting a slower -yet still solid – rise in factory output, the weakest since May. Some firms also reported more subdued new business inflows in November.
Because of our publishing schedule, the figures for the USA aren’t published until this afternoon but you can access those, and all the other reports on the “PMI by S&P Global” website at https://www.pmi.spglobal.com/Public/Release/PressReleases or on request from MTA.