Global manufacturing activity grew at its fastest pace in a year in September, an indicator based on national surveys showed on Monday. The global Purchasing Managers' Index (PMI), produced by J.P. Morgan with research and supply management organisations, jumped to 54.7 from August's 52.2, spurred by a surge in the US manufacturing index.
The global output index rose further above the 50 line that divides growth from contraction to 57.3, its highest reading in over a year, and the new orders index hit a 13-month high of 57.5 from 54.0 in August, J.P. Morgan said.
"PMI data suggest that the upswing in global manufacturing activity continued in September, despite potential headwinds from US hurricanes and the surge in global energy prices," said David Hensley, director of global economics co-ordination.
"The jump in new orders bodes well for output gains in coming months."
The global employment index edged up to 50.7 from 50.3, with growth in US and Japanese workforces offset by declines in the euro zone, Britain and China.
The US index, produced by the Institute for Supply Management, soared to 59.4 in September from 53.6 in August, wrong-footing markets where the consensus forecast was for a fall to 52.0.
European manufacturing also grew more strongly in September than financial markets had expected and Japan's PMI gave the highest reading since August 2004, despite oil prices which hit record highs above $70 after Katrina struck on August 29.
In the eurozone, where exporters are benefiting from a weakening currency, the RBS/NTC Purchasing Managers' Index (PMI) rose to a seven-month high of 51.7 in September from August's 50.4, bolstered by faster growth in output and new orders.
The British PMI showed manufacturing activity unexpectedly expanding at its fastest pace in six months, rising to 51.5 from 50.3 in August. Economists had expected stagnation at the 50 mark.
Japan's PMI, released on Friday, showed factories raising production to meet domestic demand. The NTC Research/Nomura/JMMA index rose to 54.5 from 53.8.
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