JPMorgan’s Global Manufacturing Purchasing Managers’ Index (PMI) is a measurement of economic health in the manufacturing sector that is produced through surveying private producers in several countries worldwide. An index figure of 50.0 indicates that the economy has remained unchanged. For April 2016, this rate was 50.1, indicating that the global manufacturing sector was nearly stagnant and new order levels were low.
In general, prices were higher in April 2016 than in previous months, which is a contributing factor to the stalling of growth in the manufacturing economy. The survey also noted a sharp decline in the PMI finished goods inventory index. Once inventory levels are more in line with sales levels, the index should begin to see an increase.
For more information on the survey results, see the internet links below.
- JPMorgan: Global manufacturing remains in slow growth gear during April
- Reuters: Global factory growth nearly stalled in April
Contact Lance Mann at lmann@deandorton.com for more information.