Although only a slight decrease from the previous month, the JPMorgan Global Manufacturing Purchasing Managers’ Index (PMI) for September recorded its lowest reading since July 2013. It slipped to 50.6, from 50.7 in August, according to an Oct. 1 news release.
“The manufacturing sector remained in very low gear in September, due to sluggish final demand and ongoing inventory adjustments,” said David Hensley, director of global economic coordination at JPMorgan. “These impacts are also starting to cross over into the labor market, leading global employment PMI to fall below 50 [contraction point] for the first time in over two years.”
The United States and European Union (with the exception of Greece) showed positive growth, while China continued to weaken. The China PMI fell to 47.2, a more than six year low. Brazil remained in a severe downturn, as Russia, Canada and Turkey also showed weakness.
The categories of new exports, employment, input prices and output prices all posted below 50. Output and new exports were the only categories to remain in positive territory; however, both decreased slightly from August. Manufacturing employment also dropped for the first time since July 2013, and job losses were reported in Japan, China, India, South Korea and the United Kingdom.
- Jennifer Lehman, NACM Marketing and Communications Associate
Be sure to check out eNews on Thursday, Oct. 8, for more on the Purchasing Managers’ Index.