Economic Buzz: Global Manufacturing PMI hits eight month high

February 2025 saw the global manufacturing sector move further into expansion territory. Operating conditions improved for the second consecutive month, as rates of growth in output and new orders strengthened. Price pressures continued to rise, with both input costs and selling prices rising at faster rates. The J.P.Morgan Global Manufacturing PMI – a composite index produced by J.P.Morgan and S&P Global Market Intelligence in association with ISM and IFPSM – rose to an eight-month high of 50.6 in February, up from 50.1 in January.

The level of the China PMI improved, while contractions were signalled in the euro area, Japan and the UK (among others). Growth of global manufacturing output accelerated to an eight-month high in February. Expansions were registered in the consumer and intermediate goods sub-industries — with the faster growth in the former —while investment goods production stabilised following an eight-month downturn. Increased output was underpinned by improved intakes of incoming new business, as new orders rose at the quickest pace in almost three years (since March 2022). Although the downturn in international trade volumes extended into its ninth consecutive month, the pace of contraction was mild.

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