Economic Buzz: Global Manufacturing Output Stagnates Amid Weak Economic Backdrop

2 Aug 2022 , 02:40 PM

The global manufacturing sector started the third quarter on a weak footing, as output stagnated and new order intakes contracted. International trade flows continued to retrench, while the pace of job creation near-stalled. The darkening economic backdrop also hit business confidence, with optimism dipping to its lowest level since May 2020. The J.P.Morgan Global Manufacturing PMI – a composite index produced by J.P.Morgan and S&P Global in association with ISM and IFPSM-fell to a two-year low of 51.1 in July, down rom 52.2 in June. The headline PMI, which is calculated as a weighted average of five sub-indices including output and new orders, stayed above the neutral 50.0 mark due to gains in stocks of purchases, employment and longer vendor lead times (albeit to lesser extents than June for the latter two). Manufacturing output stagnated in July, following a brief return to growth in June. Rates of expansion slowed in both the consumer and investment goods industries.Intermediate goods producers saw output contract for the third time in four months.Powered by Commodity Insights