February PMIs for the Eurozone, Japan and China all pointed toimprovements in operating conditions, but their respective levelswere lower than one month ago. The main factor leading the EurozonePMI lower was a sharp decline in the health of the Spanishmanufacturing sector, where conditions suffered their greatestdeterioration since December '01.

|

At 52.4 in February, the Global Manufacturing Output Indexsignaled an increase in production for the 58th successive month.Growth of output remained broad-based across the majority of theworld manufacturing sector, though reports of slower rates ofexpansion were also widespread. Growth steadied in the Eurozone, asstrong expansions in Germany and France offset a markedcontractionin Spain. Growth in the Asia-Pacific region was slower than onemonth ago, as rates of increase eased in Japan, China andIndia.

|

February data pointed to only a moderate increase in globalmanufacturing new orders, with that index the weakest since June'03. Weaker demand was recorded in many of the world's majorproducing regions, with new orders falling for the secondconsecutive months in the UK and Italy and at the fastest rate inover six years in Spain. New business in Europe, measured overall,and in Japan were only marginal, whereas growth remained robust andabove global average in China and India.

|

Meanwhile, the US PMI for February, as reported by the Institutefor Supply Management in Tempe, AZ, fell to a sub-50 level for thesecond time in the past three months. After recovering strongly inJanuary, the rate of expansion of US manufacturing output fell backto a level close to stagnation. New orders fell for the third monthrunning.

|

*The Global Manufacturing PMI is calculated as a weightedaverage of the New Orders, Output, Employment, inverted Suppliers'Delivery Times and Stocks of Purchases indices.Source: JPMorganChase & Co.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.