Manufacturing PMI measures the level of output of a country’s manufacturing sector, based on a number of factors including production, new orders and employment. An index value of above 50 indicates an expansion in the manufacturing sector, while an index value of below 50 indicates contraction.
The overall story is that the developed world continues to spark a manufacturing upturn, but emerging markets – now mired in a manufacturing recession for seven consecutive months – remain a drag on the global situation.
More specifically, the ongoing slump in emerging Asian markets are largely to blame. Although India and Vietnam recorded PMI figures just in excess of 50, downturns persisted in China, Taiwan, South Korea, Indonesia and Malaysia.
For developed markets, the UK topped the PMI growth rankings in October, with its figure being a 16-month high. The US ranked second on the back of “stronger export growth and robust domestic demand”, with its PMI registering a six-month high. In addition, Japan’s growth hit a one-year high, while the Eurozone saw a “modest acceleration, with expansions registered in almost all of the euro area nations covered by the survey.”
