Input Stories

In January, the global manufacturing sector edged back into expansion territory to 50.1, the first sign of improvement in operating conditions in seven months. Three of the five PMI components were at levels consistent with expansion, as output and new orders registered meager growth after contracting the month prior, and supplier delivery times shortened. On the other hand, employment and stocks of purchases continued to decline. The main reason for improved production volumes in January was the upturn in new orders.

The shift from contraction back to growth is reflective of improvements in China and the U.S., which hit a seven-month record. On the other hand, the downturn in the Eurozone, Japan and the U.K. persisted. For another month, the fastest growth compared to other surveyed countries occurred in India, followed by Colombia.

Data broken down by sector exhibited ongoing performance disparities, with output in the intermediate goods category moving back into expansion territory while investment goods industries remained weak. Meanwhile, the consumer goods sector rose for the 18th consecutive month to a seven-month high.

In January, manufacturing employment declined for the sixth consecutive month and at a faster rate than the prior month. Employment growth in India, the U.S. and Japan was insufficient to fully offset job losses in China, the Eurozone and the U.K. Input inflationary pressures picked up to a five-month high, while output cost inflation also rose at a faster rate. Future output PMIs made solid gains, indicating improved growth momentum in 2025.