Global manufacturing sector stabilises in June 2025: PMI data

The J.P. Morgan global manufacturing PMI, a composite index produced by J.P. Morgan and S&P Global Market Intelligence in association with the Institute of Supply Management and the International Federation of Purchasing and Supply Management, posted 50.3 in June, up from 49.5 in May.

The reading was slightly above the neutral mark of 50 for the first time in three months.

Three (output, new orders and suppliers' delivery times) out of the five PMI constituents were at levels consistent with an improvement in operating conditions.

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 United States and Japan.

Output continued to rise in the eurozone, albeit at a slower pace, while India continued to register the fastest overall rate of expansion.

The United Kingdom, Brazil, Mexico and Russia were among the nations that witnessed contractions.

The latest increase in production was aided by a marginal improvement in new order intakes. New business rose for the first time in three months, as expansions in China and the United States offset decreases in Japan, the United Kingdom and Brazil.

New order intakes stabilised in the euro area, registering no change following a 37-month sequence of decline.

Global manufacturing employment declined for the eleventh month in a row during June, albeit to the joint-weakest extent during that sequence. China, the eurozone and the United Kingdom were among the regions to see job losses, in contrast to increases in the United States, Japan and India.

Business optimism remained relatively subdued in June. The degree of positive sentiment was unchanged from May and below the long-run survey average for the fifteenth month in a row. The PMI surveys indicated another month of diverging price pressures globally.

Rates of inflation for factory input costs and selling prices accelerated sharply in the United States from already-strong rates seen in May. In contrast, input costs and prices charged by factories fell on average in China and the eurozone and elsewhere remained far more subdued than seen in the United States.

ALCHEMPro News Desk (DS)