Global PMI shows manufacturing growth eases

02 Oct, 2004

Growth in the global manufacturing sector slowed in September, an indicator based on national surveys of manufacturers showed on Friday.
The indicator, produced by J.P. Morgan together with research and supply management organisations, fell to 54.9 in September from August's 55.8. The index combines survey data from around 20 countries including the United States, Japan, Germany, France and Britain.
"The pace of global manufacturing activity continues to lose momentum," said David Hensley, director of global economics at J.P. Morgan. "Factory output rose at an estimated three percent annual rate in the three months to August, led by a sharp slowdown in Asia," he added.
The employment index climbed to 52.4 from 52.0, although employment fell in Japan and the eurozone. The input prices index also inched higher to 71.7 from 71.6, reflecting a rise in oil prices which hit record highs of over $50 earlier this week.
The new orders index edged lower to 55.5 from August's 57.6, while the output index fell slightly to 57.0 from 57.1. "The continued downward trend in new orders growth suggests the production slowdown may not yet have run its course", said Hensley.
National PMI surveys, released earlier, showed the pace of manufacturing growth eased in the United States, eurozone, Britain and Japan as demand for exports softened and high oil prices sent manufacturers' costs soaring.
In the United States, the Institute for Supply Management's headline non-manufacturing index fell to 58.5 from 59.0, slightly higher than the consensus forecast of 58.0.

Read Comments