Economic Buzz: Global manufacturing sector expands for 15 months in row

The Global Manufacturing Purchasing Managers? Index (PMI) survey, sponsored by J.P. Morgan and compiled by S&P Global Market Intelligence, indicated further strong worldwide factory output growth in October. The rate of growth was broadly in line with the robust pace seen over the prior six months, and hence one of the strongest readings recorded since early 2022. The J.P. Morgan Global Manufacturing PMI recorded 52.6 in October, down from 53.0 in September but remaining above the 50.0 neutral mark for the fifteenth consecutive month. Worldwide manufacturing production continued to expand at one of the strongest rates seen over the past five years in October. However, supply chain bottlenecks and resulting capacity constraints remained widely reported, with the consequent lack of supply relative to demand enabling factories to pass higher costs on to customers in increasing numbers. Rising demand and increasing backlogs of work are more widely reported for investment goods producers, reflecting relatively price-inelastic demand for AI- and defence-related purchases.

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