Global Manufacturing Growth Eases as Costs Climb and Optimism Slips
In March, growth in global manufacturing activity weakened slightly from February, decreasing from 51.8 to 51.3. Output and new orders both grew, but there was modest deceleration in the growth of new orders and near stagnation in the volume of international trade. Meanwhile, lead times continued to slow, lengthening to the greatest extent in more than three years. Employment and inventory levels were virtually unchanged in March.
Greece, Thailand, India and Ireland had the highest PMI readings in March. On the other hand, Russia, Mexico and Brazil were some of the larger nations to register declines in activity. The slowing growth in manufacturing production occurred across consumer, intermediate and investment goods.
Meanwhile, input and output price pressures surged as input price inflation hit a 44-month high. At the same time, business optimism fell to a five-month low amid supply chain disruptions and cost pressures. Geopolitical uncertainty and surging commodity prices weighed on activity and sentiment.