The downward trend of the global manufacturing PMI continued in June. The index dropped in the US and declined in the euro area to respectively 52.7 and 52.1, which brings us close to the crucial 50 mark. The various euro area countries for which data are available all recorded lower numbers. Data were also weaker in the UK and Japan. Australia, Mexico and, in particular, China saw an improvement.
The decline of new orders in the manufacturing sector continued as well and is more pronounced than for the overall index. Incoming orders weakened significantly in the US and the euro area in general as well as at the individual country level. The data are particularly poor in Germany and Italy. The order flow also declined in the UK and is very weak in the Czech Republic, Poland and Turkey. China benefited from a significant improvement. The situation in terms of new export orders is even worse than for orders in general. Against this background, the resilience of the employment data again came as a relief. The numbers weakened in June but in recent months the decline has been more limited than for the overall index or for new orders. The level of the employment PMI remains high. Poland is a major exception with a significant decline in June, bringing the index to 47.6. Despite the improvement of the overall index, the Chinese employment PMI hardly changed.
Delivery times continue to shorten but they remain particularly long. The pace of improvement is slow. The biggest improvement in June was noted in China. Another measure of price pressures -the manufacturing input prices index- recorded further easing in June at the global level and, quite significantly, in the US and the euro area. However, the net balance of companies being confronted with rising input prices remains high. Similar conclusions can be drawn with respect to manufacturing output prices: fewer companies are raising their prices but a vast majority continue to do so.
The services PMI continued its decline in the US, in the euro area and its member countries. The UK saw some improvement but the level remains well below that of April. The situation was also better in Japan, Brazil and especially China, for the same reasons as mentioned above (easing of mobility restrictions). The assessment of new business worsened in June, particularly in the US but the decline in the euro area and its members as well as in the UK was significant. Brazil and, even more so, China moved in the opposite direction with better data. The employment PMI in services registered another decline in June but the data are more resilient than for the overall services index. Germany and Italy are major exception, suffering from a drop in June. Hiring activity improved in Brazil, China and India. The tensions on input prices dropped in the US but ticked higher in the euro area. Output prices moved considerably lower in the US and eased in the euro area. The decline was significant in France.
MANUFACTURING PMI
MANUFACTURING PMI - NEW ORDERS
MANUFACTURING PMI - EMPLOYMENT
MANUFACTURING PMI –DELIVERY TIMES
MANUFACTURING PMI – INPUT PRICES
PMI - MANUFACTURING OUTPUT PRICES
PMI: SERVICES
PMI: SERVICES - NEW BUSINESS
PMI: SERVICES - EMPLOYMENT
PMI: SERVICES - INPUT PRICES
PMI: SERVICES - OUTPUT PRICES
