S&P: Global manufacturing output drops in Sep. ’24
The Global Manufacturing Purchasing Managers’ Index (PMI) survey’s sub-index of production, which tracks actual month-on-month changes in factory output, showed lower production volumes in September, the first decline since December 2023 after a flat August.
The survey data shows a strong correlation of 75 per cent with the official annual rate of change in global production, with the survey data leading by three months. Moreover, the latest PMI data suggests that the worldwide manufacturing output has stalled in the third quarter after growing at a relatively robust annual rate of around 2 per cent in the second quarter. A downward is likely to continue into the fourth quarter.
The eurozone, led by Germany, reported the steepest fall in production. Meanwhile, output in the United States also slipped deeper into contraction, while Japan saw a marginal decline.
In Asia, mainland China’s production growth barely increased, remaining broadly stagnant for the third consecutive month. Other Asian economies also experienced a slowdown in manufacturing expansion.
Among the economies monitored by the S&P Global’s PMIs, only India and the Philippines reported faster manufacturing output growth than the United Kingdom. Conversely, Myanmar experienced a steeper rate of decline than Germany.
In total, 22 out of 31 economies for which PMI data is available reported a decline in output.
Attribution: S&P Global report
Subediting: Y.Yasser
