September saw a marginal decline in the global Purchasing Managers’ Index (PMI) for manufacturing (published by S&P Global) compared to August, but at 50.8 this remains above the 50 threshold. As always, this hides a diversity of trends, with the UK standing out as the weakest PMI index out of all the countries reported.
The manufacturing PMI for the UK dropped to a five-month low of 46.2, down from 47.0 in August, marking its twelfth straight month below the neutral 50.0 threshold. Four of the five PMI components – output, new orders, employment, and input stocks – signalled a further deterioration in operating conditions, indicating that UK manufacturers continued to face tough conditions in September, with weak domestic demand and a decline in new export orders curbing both production and overall order volumes. Economic uncertainty, exacerbated by ongoing tariff instability, added to the strain. Automotive factory closures also impacted activity in September, though this effect should be short-lived.
The eurozone PMI slipped from 50.7 to 49.8 in September, indicating a marginal contraction in operating conditions following a brief rise above the 50.0 threshold in August. The downturn was led by falling new orders, which declined at the fastest pace since March after briefly rising in August. Export markets also weighed on demand, with overseas sales dropping for a third consecutive month. Despite weaker orders, production volumes continued to grow, extending the current run of expansion since March, though growth slowed sharply from August’s recent high. Job shedding accelerated, with workforce numbers falling at the fastest rate in three months, while firms also reduced purchasing activity and inventories. Price pressures eased, as both input costs and output charges recorded slight declines.
Sentiment for rising output over the next year remained positive overall, but confidence was at its weakest since April. Conditions varied across the region, with the Netherlands leading growth, supported by further expansion in Ireland. In contrast, Germany, France, Italy and Austria remained in negative territory and all posted contractions, underscoring the fragility of the eurozone’s largest economies. Spain and Greece also fell slightly but remained above the 50 threshold. Overall, the modest contraction highlights persistent challenges, with demand weakness offsetting continued, though slowing, gains in production.
Among the other EU countries that have a PMI survey, there was an improvement in the reading for Hungary (which took them back into positive territory for the first time since July), Poland (where the reading remains negative), Romania (still below the 50 threshold) and Sweden (its strongest positive value since March 2022), while it fell slightly in Czechia (remaining below 50 for the third consecutive month).
Elsewhere in Europe, Switzerland remained in negative territory (as it has done since January 2023) with a further decline in September, while Türkiye also saw its manufacturing PMI fall further into negative territory; there was a small increase for Kazakhstan, but they remain fractionally below the 50 threshold.
There is a mixed picture in Asia. China’s PMI rating improved for the second consecutive month in September, rising further into positive territory, while South Korea moved above the 50 threshold for the first time since January 2025. In contrast, Pakistan moved from positive to negative territory, while Japan and Taiwan saw further declines into negative territory. India declined slightly this month but continues to have the highest PMI figure in this report. The ASEAN regional PMI rating rose from 51.0 to 51.6 in September.
In the Americas, the US recorded a slight slowdown in September (while remaining in positive territory) as growth in new orders eased amid the continued drag from tariffs on imports. Canada declined further into negative territory, as did Brazil, while Mexico’s PMI fell below 50.0 again in September after a brief positive reading in August. Colombia’s PMI also declined slightly but remained above 50.0. The individual S&P Global PMI reports are available to download on their web-site at https://www.pmi.spglobal.com/Public/Release/PressReleases but 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).