The global composite PMI rose to its highest level in a year and a half in May at 54.4 compared with 54.2 in April, the fourth increase in a row. However, this improvement in global activity conceals a clear disparity between the brisk momentum of the services sector and the weakness of the manufacturing sector. In May, the global services PMI reached its highest level since November 2021 (55.5), while the manufacturing PMI fell to its lowest level since January 2023.
In the services sector, four out of the six components covered by the survey showed improvement: new business for service providers, new export orders, input prices, and output prices. By country, the United States, Germany, China, and Japan all saw an increase in the index compared to the previous month, while it declined in the eurozone as a whole (with decreases recorded in France, Italy, and Spain) and the United Kingdom.
The picture is very different for the manufacturing PMI index, especially in developed countries. Except for Japan and France, the index declined in May due to a contraction in new orders for production. On the contrary, China and India recorded an improvement in the business climate in the manufacturing sector. In terms of components, there was a significant decline in delivery times in the eurozone, except for France. Input prices and selling prices also declined, thanks to a significant decrease in commodity prices. Regarding employment, the PMI index declined in China and developed countries, except for Germany and the Netherlands, while it increased in India, Brazil, and Vietnam.
