Global Manufacturing PMI Holds as Output Hits a Near Five-Year High
J.P. Morgan Global Manufacturing PMI: In May, growth in global manufacturing activity was unchanged from April at 52.6. Output and new orders both improved as manufacturing production growth hit a near five-year high. Meanwhile, lead times remained elevated at the greatest level since August 2022. Employment rose slightly, and inventory levels continued to grow as firms prepare for anticipated supply chain disruptions and further cost increases.
Taiwan, the Netherlands, the U.S. and India had the highest PMI readings in May. On the other hand, Russia, Brazil and Mexico were some of the larger nations to register declines in activity. The acceleration growth in manufacturing production occurred across consumer, intermediate and investment goods.
Meanwhile, input and output price pressures continued to surge as the rate of growth for selling prices remained near a 45-month high. At the same time, business optimism dipped to a seven-month low amid rising cost pressures and supply chain disruptions. Geopolitical uncertainty continued to weigh on sentiment as input costs rose to the highest level in almost four years.