Markit reported the JP Morgan Global Manufacturing PMI fell to 48.9, the fasted rate of contraction since May 2009. Led by weak growth in the U.S. rates of decline accelerated in China, Brazil, and Vietnam. Japan, Taiwan, and South Korea fell back into contraction. The Eurozone remains the main source of weakness in the index.
Commenting on the survey, David Hensley, Director of
Global Economics Coordination at JPMorgan, said:
“The global manufacturing PMI fell below 50 for the first time since last November and only the second time in this expansion. Inventory adjustments appear to be driving the contraction in manufacturing, with the PMI showing that the rate of stockbuilding (finished goods) remains quite elevated amid sluggish gains in final expenditures.”
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