Manufacturing News

Global manufacturing output remains strong throughout April, says new J.P.Morgan report

Global manufacturing continued its recovery trajectory in April, with both output and new orders showing positive trends, according to the latest report from J.P.Morgan and S&P Global PMI.

The report, which was released on May 2, 2024, indicates that the sustained upturn in manufacturing was supported by increased intake of new work and a modest expansion in international trade volumes.

The J.P.Morgan Global Manufacturing PMI, a composite index, dipped slightly to 50.3 in April from March’s 20-month high of 50.6, but it remained above the neutral 50.0 mark for the third consecutive month. Despite this slight decline, both output and new orders signaled expansions, while trends in stocks of purchases and supplier lead times indicated contraction. Employment levels remained unchanged.

The report highlights that output increased in the consumer and intermediate goods sectors, although investment goods output contracted for the first time in three months. Notably, manufacturing production increased in 16 out of the 32 nations for which April data were available, with China, the US, India, and Brazil among the leading performers. However, Europe lagged behind, with eight nations registering contractions.

While global manufacturing new orders expanded for the third successive month, the rate of growth moderated slightly. New work intakes improved for consumer and intermediate goods producers but deteriorated for investment goods producers. Nevertheless, a slight increase in new export orders contributed to the overall growth of total new business.

Looking ahead, global manufacturers maintained a positive outlook, forecasting higher production levels in the coming months. Despite some concerns about a slight decline in new orders and challenges in certain regions, the report suggests that the rebound in global manufacturing is still gaining momentum.

Price pressures continued to build in April, with both input costs and selling prices accelerating. However, global supply chains largely managed to withstand potential disruptions, with average vendor lead times improving for the fourteenth time in the past 15 months.

Overall, while there are signs of a slight slowdown in certain areas, the report indicates that the global manufacturing sector is on a path of recovery, with positive momentum expected to continue in the near term.

Send this to a friend