Global Manufacturing Growth Accelerating

The JP Morgan Global Manufacturing PMI rose to 53.2 in November from 52.1 in October, indicating a faster improvement in overall operating conditions. Manufacturing output and new orders rose at the quickest pace since February 2011. A moderate rise in employment was reported the US, Japan, the UK, India, Taiwan, South Korea, Turkey, Vietnam, Canada and Mexico. Employment levels dropped in the Eurozone, China, Indonesia and Brazil. Input prices increased in November but at a slower rate with some success in passing increases along to customers.

“November PMI data signal a further acceleration in global manufacturing production,” said David Hensley, Director of Global Economics at JP Morgan. “It appears that output gains are receiving a temporary boost from inventory dynamics, in addition to underlying support from final demand. Near-term momentum remains positive, with the leading orders-to-inventory ratio hitting a 33-month high.”