Global PMI Rises 0.3 Points Despite Widespread Output Declines

The JP Morgan Global Manufacturing PMI made a modest uptick to 52.2 in May after dropping to a six month low of 51.9 in April. Faster expansion rates were seen in production, new orders and orders for new exports. Overall improvement, however, remains modest with the average rate of increase in business conditions lower than occurred in first quarter 2014. The US, UK and Czech Republic led production growth for the month. Production output fell in China, Japan, South Korea, Russia and Brazil.

Commenting on the survey, David Hensley, Director of Global Economics Coordination at JP Morgan, said, “The growth rate of global manufacturing production ticked higher in May, as companies raised output in response to rising levels of new business and international trade volumes. The effects of the upturn are still being felt in the labour market, with job creation registered for the tenth successive month. Improving demand and rising employment should position the sector well to achieve faster growth heading into the second half of the year.”