April was marked by the stabilisation of the Purchasing Managers Index (PMI) for the manufacturing sector (table 1), after a slight decline in March. The United States and Canada reported a slight increase, with the index rising above 50 (the level separating expansion from contraction), while in the eurozone, the index slipped to 45.8, the lowest level since May 2020. In 7 of the 8 countries followed in the eurozone, the index remained below 50, signalling a contraction. In Asia, PMI continued to decline further in Vietnam, while in China it slipped slightly into contraction territory at 49.5. In Japan, in contrast, PMI continued to rise. Brazil and the United Kingdom also recorded a decline in manufacturing activity.
MANUFACTURING PMI
After March’s decline, new export orders (table 2) rebounded in April, buoyed by increases in Brazil, India, and South Africa, and to a more limited extent in Japan and China. In the United States, the index rose slightly in April after a 2-month decline. In contrast, the index fell slightly in the eurozone, the Netherlands and Greece, and contracted in France, Austria, Spain and Italy. The index rebounded strongly in Ireland and increased in Germany. In the UK, the index continued to decline slightly.
MANUFACTURING PMI - NEW EXPORT ORDERS
The figures for manufacturing sector employment (table 3) are much better oriented. Hiring intentions have increased in the United States, the United Kingdom and, to a lesser extent, Japan, but the same cannot be said for Vietnam, South Korea and Brazil. Employment figures for China declined slightly for the second consecutive month.
MANUFACTURING PMI - EMPLOYMENT
PMI manufacturing input prices (table 4) continued to contract at the world level for the third consecutive month, with declines reported for all countries covered by the survey with the exception of the United States, Canada, Brazil, India and Russia. Manufacturing output prices (table 5) also declined at the world level for the third consecutive month. This decline is mainly due to the decline in the eurozone index, eurozone member countries, the UK and Canada. Conversely, the index continued to rise in Japan for the third consecutive month, and for the second time in India and Hong Kong. In the United States, the index rebounded strongly in April, following the PMI in input prices.
MANUFACTURING PMI - INPUT PRICES
PMI MANUFACTURING - OUTPUT PRICES
Delivery times (table 6) continued to shorten at the global level, which should help ease inflationary pressures (Note: an increase in the index indicates shorter delivery times). This is also true for the United States, Japan, the eurozone and the eurozone member countries. In contrast, the UK, China, Vietnam and Indonesia reported longer delivery times.
MANUFACTURING PMI - DELIVERY TIMES
Activity in services is much more dynamic. The services PMI (table 7) continued to increase at the world level, rising above 55. It rose in virtually all of the countries in our selection, with the exception of Spain, China, Russia, Lebanon and Hong Kong. It rose sharply in India, Brazil, the UK, Germany, Ireland, and Italy.
SERVICES PMI
Tarik Rharrab
