The JPMorgan Global Manufacturing Purchasing Managers Index for September posted its lowest reading in 25 months at 52.3, down from a high of 54.4 in June. A rating of 50 indicates no change. JPMorgan says this drop in the rating mainly reflects slower rates of expansion for output and new orders.
A comparison of August versus September ratings indicates global manufacturing is still expanding but at a slower rate than August.
Global Purchasing Managers’ Index down 0.8 to 52.3 (an eight-month low)
Output Index down 1.3 to 53.9
New Orders down 1.4 to 52.5
Input Prices down 3.1 to 61.2
Employment is up 0.2 to 52.2
Commenting on the survey, David Hensley, director of global economics coordination at J. P. Morgan, said, "September PMI data provided further tangible evidence that the global manufacturing sector has entered a phase of slower expansion. Growth of output hit an eight-month low. The trend in new order growth is particularly concerning, with orders books increasing at the weakest pace since May 2005. Manufacturers appear to be responding to slower demand growth and credit market tightening by curtailing the growth of new orders and inventory. Conditions in the global manufacturing sector are likely to remain weak through year's end."
The JPMorgan Global Manufacturing Purchasing Managers’ Index is produced by J.P. Morgan Chase & Co. and NTC Economics Ltd. in association with the Institute for Supply Management and the International Federation of Supply Management and is the result of surveys conducted in the United States and other countries that account for more than 83 percent of global manufacturing output.