Economic Buzz: Global manufacturing PMI in expansion zone for first time in three-months

June saw conditions in the global manufacturing sector stabilise as the levels of both output and new orders returned to growth and employment registered its weakest decrease since August 2024. The J.P.Morgan Global Manufacturing PMI came in at 50.3 in June, up from 49.5 in May, a reading slightly above the neutral mark of 50.0 for the first time in three months. Three out of the five PMI constituents were at levels consistent with an improvement in operating conditions (output, new orders and suppliers' delivery times). Although stocks of purchases and employment both fell, rates of contraction were only marginal. The Global Manufacturing Output Index rose by 2.3 points to a four-month high of 51.3 in June, up from 49.0 in May. This was the best month-on-month gain in its level since June 2022. Data broken down by sub-sector saw output rise across the consumer, intermediate and investment goods categories, although growth was weaker in the first compared to the latter two. The rebound in worldwide production volumes was underpinned by returns to growth in China, the US and Japan.

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