Posted By Paul Tate, July 01, 2014 at 9:46 AM, in Category: Manufacturing Leadership Community
Impressive growth figures for the global manufacturing sector during June were released today. The final manufacturing Purchasing Manager’s Index (PMI) rankings for last month, revealed by industry analysts Markit Economics this morning, show many of the world’s major manufacturing economies notching up strong rates of expansion, or returning to growth.
The overall Global Manufacturing PMI also hit a four-month high in June.
Here’s a quick snapshot of some of the key June performance figures for manufacturing sector activity around the world. A figure above 50 marks expansion; below 50 marks contraction.
Trending to Growth
* U.S. – the U.S. manufacturing sector enjoyed the strongest improvement in business conditions for over four years in June with a PMI of 57.3, a significant rise from 56.4 in May. Manufacturing output, new orders and employment all expanded at a faster rate last month.
* U.K. – continuing to register one of the fastest industrial growth rates in the world, the UK’s manufacturing PMI hit 57.5 in June, up from 57.0 in May. This is the 16th straight month of expansion for the UK manufacturing sector and the second highest reading in the last 40 months.
* Eurozone – maintaining its recovery and still showing growth but at a slower rate in June, the Eurozone PMI slipped from 52.2 in May to 51.8 last month. Spain performed well with a PMI of 54.6, an 84-month high, and Ireland posted 55.3 in June, up from 55.0 in May, reflecting the strongest expansion of new orders since May 2011. Rates of growth continued but slowed slightly in Germany, Italy and The Netherlands, while French and Greek manufacturing performance was notably poor in June with both countries sliding back into contraction with PMIs of 48.2 and 49.4 respectively.
* China – moved back into growth in June with a PMI up to 50.7 from 49.4 in May, the first time China’s manufacturing sector has expanded since the beginning of the year.
* Japan – also moved back into growth last month with a PMI up from 49.9 in May to 51.5, the fist improvement in business conditions for Japanese manufacturers in three months.
* Other Asia - India saw a marginal rise in June to 51.5, up from 51.4 In May; Taiwan growth rose strongly to 54.0 in June, from 52.4 in May; Indonesia increased slightly from 52.4 in May, to 52.7 in June; and Vietnam saw growth rates ease slightly at 52.3, down from 52.5 in May.
* Mexico – little change last month with a June PMI of 51.8 in June, marginally lower than the 51.9 in May.
Trending in Contraction:
* Brazil – continuing slow performance saw Brazil’s PMI sliding further into contraction at 48.7 in June, down from 48.8 in May.
* South Korea – down from 49.5 to 48.4 in June, fastest rate of decline since August 2013.
* Russia – the eighth month running that the PMI has been below the growth threshold with a June figure of 49.1.
* Turkey – falling into contraction in June from 50.1 in May, to 48.8 last month.
Global Manufacturing Hits Four-Month High
Overall, the JP Morgan/Markit Global Manufacturing PMI rose solidly to a four-month high at 52.7 in June, up from 52.1 in May, and the 19th month of overall expansion for the global manufacturing industry.
Written by Paul Tate
Paul Tate is Research Director and Executive Editor with Frost & Sullivan's Manufacturing Leadership Council. He also directs the Manufacturing Leadership Council's Board of Governors, the Council's annual Critical Issues Agenda, and the Manufacturing Leadership Research Panel. Follow us on Twitter: @MfgExecutive