Global Manufacturing Edges Higher as Employment Growth Hits Three-Year High

In August, growth in global manufacturing strengthened slightly from July, ticking up from 52.1 to 52.3. Output and new orders both improved at faster paces than the prior month. Meanwhile, lead times lengthened, but the rate of increase eased to the lowest level since March. Employment rose at the quickest pace in three years while stock purchases grew.

Ireland, the Philippines, Japan and Taiwan had the highest PMI readings in August. On the other hand, Brazil, Russia and Mexico were some of the larger nations to register declines in activity. The growth in manufacturing production was supported by consumer goods, while rates of increase slowed for intermediate and investment goods.

Meanwhile, input price inflation softened to a six-month low, while output price growth accelerated in August. At the same time, business optimism increased to its highest level since February. Employment rose, led by gains in the U.S. and Japan.