Global PMI Still in Contraction

The global manufacturing sector remains in contraction but is beginning to stabilize, says the latest report from J.P. Morgan and IHS Markit. The J.P. Morgan Global Manufacturing PMI rose for a second month in a row reaching 49.7, although still below the 50 neutral point.

“The global manufacturing PMI sent a message of stability in September,” said Olya Borichevska from Global Economic Research at J.P. Morgan. “The output index near 50.0 is broadly unchanged from its level in May and consistent with very modest growth in IP. Away from the output PMI, other components also stabilized though at depressed levels. For now, the PMI is consistent with our rest-of-the-year outlook in which we expect modest growth in global manufacturing output. Conditions will need to revive if manufacturing is to show a substantial recovery in the coming months.”