The latest J.P. Morgan Global Manufacturing PMI, compiled by S&P Global, pointed to a further strengthening of global manufacturing activity in August. The PMI rose to 52.3, from 52.1 in July, reaching a three-month high and remaining above the 50.0 expansion threshold for the thirteenth consecutive month.
All five PMI sub-components were consistent with improving operating conditions. Output, new orders and employment all increased, while stocks of purchases also rose and suppliers’ delivery times lengthened. Global production expanded across consumer, intermediate and investment goods, although the pace of growth in the latter two sectors eased.
The UK manufacturing sector remained in expansion, with the PMI edging down to 51.7 from 51.9 in July. This marked a tenth consecutive month above the 50.0 threshold. Output, new orders and employment all increased, while supplier delivery times lengthened. Stocks of purchases, however, fell for the third consecutive month.
UK manufacturing output increased for a fifth successive month, although the rate of growth eased to its weakest since April. The increase was supported by stronger new work, with demand from both domestic and overseas customers improving.
The euro area saw a particularly strong improvement, with its Manufacturing PMI rising from 51.9 to 52.7, the highest reading since May 2022. Germany recorded its strongest manufacturing growth for more than four years, while France also contributed to the upturn. This was partly offset by a renewed contraction in Italy, while Spain remained the only other monitored euro area economy in contraction.
Manufacturing performance elsewhere remained mixed. In Asia, most major economies remained in expansion, despite slower growth in India, South Korea, Taiwan and ASEAN. The US, Canada and Colombia also remained in expansion, while Mexico and Brazil were in contraction.
Among the countries monitored, Switzerland recorded the strongest PMI at 57.1, while Kazakhstan had the weakest at 46.0. Switzerland also recorded the largest monthly improvement (+3.9 points), while Russia saw the sharpest deterioration (-1.9 points), returning to contraction after two months of expansion. 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).