News & Insights

In September, the global manufacturing sector contracted for the third consecutive month, with overall operating conditions declining at the fastest rate since October 2023. The J.P. Morgan Global Manufacturing PMI dropped to 48.8 in September from 49.6 in August. Four of the five PMI components were at levels consistent with contraction, while only the suppliers’ delivery times index posted growth. New business orders, new export orders and employment all declined at a faster rate than in August.

The Eurozone saw the steepest decline in production, led by Germany. Output in the U.S. fell deeper into contraction, while China stagnated for the third straight month. Growth in India, Brazil, Spain and the U.K. remained the fastest. Among 32 nations, only 10 reported increased manufacturing production in September, led by India.

Data broken down by sector pointed to widespread malaise across the global industry. The intermediate and investment goods industries both experienced a contraction in production, and, although expanding, consumer goods growth remained tepid. All three subindustries saw declines in new orders and new export business.

In September, manufacturers’ decision-making was targeted at minimizing costs and combating underutilized capacity. Employment fell for the second consecutive month and to the greatest extent since December 2023, as continued decreases in backlogs of work suppressed the need for workers. The ongoing downturn dipped confidence to a 22-month low in September. On the other hand, inflationary pressures continued to ease, registering the mildest rates of increase in both input costs and selling prices since March.