Macroeconomic Trends
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Supply-chain Indices 


Global Manufacturing PMI

J.P.Morgan - IHS Markit

  Last update  
  12 Sep 2021  
  PMI eases to six-month low as supply chain issues constrain output growth  

Key findings

  • Global Manufacturing PMI at 54.1 in August (July: 55.4)
  • Output and new order growth slow
  • Supply chain issues drive up input costs

The upturn in the global manufacturing sector lost further momentum during August, as rates of output growth decelerated in several major markets including the US and euro area and slipped into contraction (on average) in Asia.

The J.P.Morgan Global Manufacturing PMI™ – a composite index produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – fell to a six-month low of 54.1 in August. This nonetheless extended the current sequence of improving operating conditions to 14 months.

Out of the 31 nations for which August data were available, 21 registered PMI readings above the neutral mark of 50.0 compared to ten signalling contraction (below 50.0). The slowdown was broad-based, however, with the PMI readings for 24 of the countries covered lower than in July.

Growth continued in many of the largest nations covered, including the US, Japan, Germany, the UK, France, India, South Korea and Brazil. In contrast, China, Russia and Mexico were among the nations recording a sub-50 reading.

August PMI data also indicated that growth continued across the consumer, intermediate and investment goods industries. However, rates of increase in output, new orders and employment eased in all three sectors.

Manufacturing production and new orders both rose for the fourteenth successive month in August. However, the rate of expansion in output eased to its weakest during that sequence. Efforts to raise production further were constrained by supply chain issues and, in some cases, shortages of labour and skills.

Growth of new export business eased to a seven-month low in August. Rates of increase slowed at intermediate and investment goods producers, while a decrease was seen in the consumer goods sector. New export intakes continued to rise strongly in the euro area (including intra-bloc trade) and, to a lesser extent, the US, while Japan and China were among the nations to register a reduction in external trade volumes.
Supply chain disruption remained severe during August. This was highlighted by a further marked increase in average vendor lead times, with the extent of the lengthening staying close to June's series record. Companies reported transportation delays and shortages developing for a wide range of inputs and raw materials. With rising demand chasing constrained supply, average purchasing costs rose sharply, which also fed through to a further near-record increase in selling prices.

Employment rose for the tenth month running in August, with the rate of expansion remaining solid. Companies were encouraged to increase staffing due to rising demand, higher backlogs of work and robust business optimism. Although confidence dipped to a ten-month low, it remained above its long-run average and indicated that manufacturers still expect production to rise over the coming 12 months.



  Country/Area Index Source Link  
  Global J.P.Morgan Global Manufacturing PMI IHS Markit  

Last updated: Jun 19, 2018


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News & Trends

Last update 12 Sep 2021
PMI eases to six-month low as supply chain issues constrain output growth
   Source: J.P.Morgan Global Manufacturing PMI   -  IHS Markit

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