Global Purchasing Managers’ Index, September 2021: With the release of the data for the Americas last Friday afternoon, the global manufacturing PMI which is compiled by J. P. Morgan using the data from IHS Markit came out at 54.1; this was unchanged from the August reading. Output growth accelerated slightly for the first time in 5 months and there was also an improvement in new orders. However, supply chain disruptions and shortages of inputs are driving higher prices (a negative in the index calculation) for both inputs and selling by the sector.
Of the 31 nations covered by the global report, 24 were above the crucial 50 level (with China exactly on this mark) and the higher reaches of this range had European countries in nine of the top ten positions. At the bottom, 4 countries from the ASEAN region were in negative territory, along with Mexico and Russia.
This brings us neatly to the situation in the Americas which we did not cover last week. Despite a reasonable improvement on the August figure, as noted above, the manufacturing PMI for Mexico remains in negative territory at 48.6; there was also a modest improvement in the reading for Brazil which took it to 54.4. In the North of the region, both the USA (60.7) and Canada (57.0) saw a slight easing from the August PMI levels but they are both still indicating a significant rate of expansion in activity in the manufacturing sector.
The PMI reports are available to download from the IHS Markit PMI web-site at https://www.markiteconomics.com/Public/Release/PressReleases; an updated version of our summary charts report is attached below.