February S&P Global PMI data provided good news overall. One of the key results is the recovery in China's manufacturing PMI, which reached 51.6, its highest level in eight months (compared with 49.2 in January). This improvement is linked to the gradual recovery in factory production since the lifting of health restrictions. In the eurozone, the figures are mixed down in France, Germany and Austria, but up quite sharply in Spain, Italy and Ireland. In the United States and Japan, the index remained below the 50-point threshold, i.e. in a contracting zone for the fourth consecutive month (Table 1).
The new orders component continued its rebound in February, coming closer to the 50-point mark at the worldwide level, driven by an improvement in supply chains and the end of health restrictions in China. This manufacturing subindex increased sharply in the United Kingdom, China, Vietnam and, to a lesser extent, Spain, Italy, Greece and Ireland. In contrast, it fell sharply in France and, in a more limited way, in Japan (Table 2).
The manufacturing employment sub-index has also increased globally, driven by its sharp rise in China, the United States, the United Kingdom and more slightly in the euro area. On the other hand, it retreated in France and the Netherlands. Notably, this employment subindex remains above the 50-point threshold in 28 of the 34 countries for which February data are available (Table 3).
The input price sub-index fell sharply in February in all developed countries, with the exception of Spain, where it recovered somewhat. It also declined in China and Indonesia, but to a lesser extent (Table 4). The manufacturing output price sub-index remained stable at the global level, masking a fairly sharp rise in the United States, Spain and Japan and a sharp fall in France, Germany, Austria, the Netherlands and Italy (Table 5).
As a further sign of diminishing tensions on the supply side, delivery times in the manufacturing sector have improved above the 50-point threshold for the first time since July 2009, with a shortening in particular in the US, euro area and China (Table 6).
Finally, the services PMI rose in February compared to the previous month in almost all countries in our sample, except Brazil. It increased markedly in the United States, France, Spain, the United Kingdom and Ireland (Table 7).
Tarik Rharrab
