News & Insights

In September, global manufacturing activity was relatively unchanged from August, inching down from 50.9 to 50.8. Output and new orders both rose for the second consecutive month in September. However, these increases failed to stimulate other gains, with staffing levels remaining stable for the second consecutive month and new export business falling for the sixth consecutive month. Meanwhile, supply chains remained stretched as lead times lengthened for the 16th consecutive month.

India, Thailand, Netherlands and Myanmar had the highest PMI readings in September. On the other hand, the U.K., Brazil and Canada were some of the larger nations to register declines in activity. The upturn in manufacturing output occurred across consumer, intermediate and investment goods categories for the second consecutive month, with the pace of growth being greatest for consumer goods.

Meanwhile, price pressures eased slightly in September, with the rate of increase in input and output costs both slowing. Forward-looking indicators were more positive, with future output and export orders advancing from the prior month, but the surge in finished goods inventory suggests that production growth could be due largely to stockpiling rather than an improvement in demand.