The latest survey data show a very mixed picture. In the manufacturing sector, China saw some signs of stabilisation, whereas Japan experienced a deterioration. In Germany, manufacturing remains under pressure. The picture in the eurozone is quite diverse, depending on the country and the sector. Looking at the broadest survey indicator for the eurozone, one observes a stabilisation. Whether this will be confirmed depends to a large degree on developments in China and on the well-known sources of uncertainty (trade, Brexit).
The slowing trend of the global economy means that the recent survey data were eagerly awaited. The picture which emerges is mixed. In Japan, the Nikkei manufacturing PMI index dropped below 50, the dividing line between expansion and contraction. In the US, the manufacturing ISM index dropped to 54.2. It had rebounded in January following a big decline in December. In China the contraction seems to have come to an end as the Caixin PMI index rose to 49.9, its highest level in three months.