The J.P. Morgan Global Manufacturing PMI edged up to 50.1 in January, marking the first improvement in operating conditions in seven months. However, regional disparities remain, with concerns over potential U.S. tariffs impacting business sentiment.
📊 Key Highlights:
✔ Production & New Orders: Moved into expansion, lifting output after December’s mild contraction
✔ Regional Leaders: India led growth, while U.S. output rebounded to a seven-month high
✔ China: Showed strengthened expansion, while Japan, the UK, and the euro area remained in contraction
✔ Sector-wise Trends:
- Consumer goods: Fastest growth in seven months
- Intermediate goods: Returned to expansion
- Investment goods: Continued downturn for the eighth straight month
📉 Challenges Persist:
🔻 Labour Market: Staffing levels declined for the sixth consecutive month, with layoffs in China, the euro area, and the UK outweighing hiring in India, the U.S., and Japan
🔻 Global Export Orders: Contracted for the eighth month, albeit at a slower pace
🔻 Supply Chain Pressures: Supplier performance worsened for the eighth month, with input buying volumes and inventories falling
🔻 Price Pressures: Input cost inflation surged to a five-month high, leading to steeper increases in selling prices
Despite pockets of resilience, the manufacturing sector continues to face labour market strain, price pressures, and supply chain disruptions.
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