Economic Buzz: Global manufacturing output expanding at a solid pace

The upturn in the global manufacturing sector continued in June, with production still expanding at a solid pace. There were signs that growth may have passed its peak, however, as the rates of increase in both output and new orders eased for the second successive months. Moreover, business optimism dipped to an eight-month low and job losses were initiated. 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 ? posted 52.2 in June, down from May's 50-month high of 52.7 and its lowest reading since March. The PMI has posted above its no-change mark of 50.0, signalling expansion, for 11 months in a row. Four of the five PMI components were at levels usually onsistent with an improvement in operating conditions. Output, new orders and stocks of purchases all expanded and vendor delivery times lengthened. Employment decreased for the third time in past four months.

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