In the manufacturing sector, the global Purchasing Managers’ Index (PMI) showed a slight improvement in January following ten months of declines though still in contraction territory (49.1 points). With the exception of Japan, where the index remained stable, 26 of the 33 countries for which data for January was available reported increases. The index rebounded in the United States and China compared to the previous month, while it continued its recovery in the Eurozone, in particular in Germany, Spain and Austria. It passed the 50-point mark in Canada, France, Ireland, Italy and Hong Kong. The Indian index was down in January but remained at a comfortable level, while it fell below the 50-point mark in Switzerland and Mexico, which is indicative of a contraction in activity in the manufacturing sector.
MANUFACTURING PMI
The global PMI index for export new orders also showed a slight improvement in January, reaching 47.5 points, after stabilising for two months. For the third consecutive month there were marked improvements in the United States and in the Eurozone, albeit that the levels remained below the 50-point threshold. Improvements were seen in most of the Eurozone countries with the exception of Ireland, where the index fell in January and France where it remained stable. It rose for the second consecutive month in Japan and the United Kingdom. The index showed an increase in China, Hong Kong and Vietnam, while it fell in Indonesia, and for the third month in India, but it remains well above the 50 mark which represents the threshold between contraction and expansion.
MANUFACTURING PMI - NEW EXPORT ORDERS
The PMI global index for employment in the manufacturing sector performed slightly better in January following three months of declines, rebounding above the 50-point mark. It was somewhat weaker in the United States while it rose slightly in the Eurozone, but this masks diverging trends at the national level, with sharp increases in France (to 51.7) and Ireland (to 52.6), and moderate improvements in Spain and Italy, while sharp falls were seen in the Netherlands and in Germany. The index recovered in the UK, but starting from a very low level. The situation remained stable in Japan. As the other PMI data shows, the situation in Vietnam and in Brazil showed a marked upturn and there was a significant improvement in China, while the index slowed in India and Indonesia.
MANUFACTURING PMI - EMPLOYMENT
The global index of input prices registered a small increase in January. The United States saw a strong rise, bringing the downward trend to an end. However, the indices for the Eurozone and for those Member States for which survey data is collected fell sharply. In China and India, the index rose slightly in January, while the downward trend continued in Indonesia. It continued to rise in Vietnam.
MANUFACTURING PMI - INPUT PRICES
The global index of output prices was stable in January, with increases seen in the United States and in the Eurozone. The index rose sharply in France and, to a lesser extent, in Germany and Austria, while it fell substantially in Ireland, Spain, the Netherlands and Italy.
MANUFACTURING PMI - OUTPUT PRICES
Global delivery times continue to shorten and approached the 50 mark in January. The Eurozone saw a slight deterioration, particularly in Germany, France, Spain and Greece, while the situation improved in the United States, Canada, the Netherlands and Italy (starting from various levels), but also in Asia (China, Hong Kong, India, Indonesia and Vietnam).
MANUFACTURING PMI - DELIVERY TIMES
Lastly, the global services PMI was up in January, passing just over the 50-point mark, buoyed by a strong rise in China, and by more modest upturns in the United States, Japan and the Eurozone. Conversely, India, the United Kingdom and Brazil all saw declines. The French index also fell but marginally.
MANUFACTURING PMI - OUTPUT PRICES
Tarik Rharrab
