The latest J.P. Morgan Global Manufacturing PMI, compiled by S&P Global, continued to signal expansion in global manufacturing during July, although growth moderated slightly. The Global Manufacturing PMI eased to 52.1, marking the 12th consecutive month above the neutral 50.0 level.
All five PMI sub-components remained consistent with improving operating conditions. New orders, output and stocks of purchases continued to increase, employment returned to growth, and suppliers’ delivery times lengthened. Production has now expanded for 12 consecutive months, while new orders have increased for seven months. Growth was recorded across the consumer, intermediate and investment goods sectors, although both output and new orders rose at their slowest pace for four months. Supply chain delays and cost pressures continued to ease, but geopolitical tensions, trade tariffs and higher energy prices remained key downside risks.
The UK manufacturing sector also remained in expansion territory. The UK Manufacturing PMI eased to 51.9 in July, from 52.5 in June, but remained above the 50.0 threshold for a ninth consecutive month. Four of the five PMI sub-components signalled improving operating conditions, with output, new orders and employment all increasing, while supplier delivery times continued to lengthen. The slight decline in the headline PMI reflected a sharp reduction in stocks of purchases, slower employment growth and a smaller increase in supplier lead times.
Encouragingly, UK manufacturing output increased for the fourth consecutive month, with the pace of growth reaching its strongest level for almost two years. Output expanded across the consumer, intermediate and investment goods sectors, although performance varied by company size, with medium and large manufacturers reporting growth while smaller manufacturers experienced a modest decline.
Elsewhere in Europe, the euro area Manufacturing PMI remained at 51.9, signalling expansion for a sixth consecutive month. Seven of the eight countries covered by the survey were in expansion territory, with France the only exception after slipping back into contraction. Spain returned to expansion following a contraction in June, while growth strengthened in Germany, Ireland, Austria and Greece, but eased in Italy and the Netherlands.
Outside the euro area, manufacturing activity remained mixed. Russia expanded for a second consecutive month after a year of contraction, while Romania also returned to growth. Czechia, Hungary, Sweden and Switzerland remained in expansion, whereas Kazakhstan, Türkiye and Poland continued to contract.
Across Asia, most economies remained in expansion despite a slight easing in China, Japan, India and Taiwan. In the Americas, the United States, Canada, Mexico and Colombia all remained in expansionary territory, while Brazil moved back into contraction.
Globally, Sweden recorded the strongest Manufacturing PMI reading at 55.8, while Kazakhstan registered the weakest at 47.0. Poland recorded the largest month-on-month improvement (+2.9 points), while Brazil experienced the sharpest decline (-3.3 points).
The individual S&P Global PMI reports are available to download on their website at https://www.pmi.spglobal.com/Public/Release/PressReleases and we also have a summary charts report which is available to download below. You should note that the PMI readings for Hungary, Sweden and Switzerland are not compiled by S&P Global but can be found with an appropriate internet search (it also means that they are not part of the global PMI calculation).