Optimistic Outlook for Global Manufacturing

Global manufacturing accelerated in April, strengthening to its best reading since April 2010 for the J.P. Morgan Global Manufacturing PMI. The PMI rose to 55.8 from 55.0 in March. Of the 24 nations covered by the index as of April 23, only the Philippines, Mexico and Myanmar remained in contraction.

“The latest PMI surveys show how the gradual unwinding of COVID-19 restrictions in many parts of the world is driving an accelerated upturn in manufacturing activity,” said Olya Borichevska, Global Economist at J.P. Morgan. “Rates of expansion in output and new orders were the strongest in over a decade, supporting renewed job creation. Constraints are still being felt across global supply-chains, however, with raw material delivery times lengthening and the resulting shortages leading to increased inflationary pressures. Input costs rose at the fastest pace in a decade, leading to a series-record increase in factory gate prices.”