Strongest manufacturing output expansion rates in Nov in India, Russia

The J.P. Morgan global composite purchasing managers’ index (PMI) output index rose to 50.4, up from 50 in October, to signal expansion for the ninth time in the past ten months. Employment growth came close to stalling.

The index is generated by J.P. Morgan and S&P Global in association with the Institute of Supply Management (ISM) and the International Federation of Purchasing and Supply Management (IFPSM).

There were also some positive signals coming out of the manufacturing industry. Although production volumes decreased for the sixth successive month, the rate of contraction was negligible and the weakest during that sequence.

Output growth was registered in seven of the 14 nations for which November composite PMI data were available, S&P Global said in a release. The strongest rates of expansion were in India and Russia, with increases also seen in the United States, China, the United Kingdom, Brazil and Ireland. Japan, Germany and France were among the countries that saw contractions.

November saw no change in the level of new business received, as a modest increase at service providers was offset by a further decrease at manufacturers.

The trend in new export business remained downbeat, however, as international trade in goods and services contracted for the twenty-first successive month. With the flat trend in new business inflows, companies raised output through the completion of existing contracts.

Backlogs of work decreased for the seventh consecutive month and to a slightly greater extent than in October.

There were also growing signs that the generally lacklustre trends in output and new business during recent months were taking their toll on the labour market.

Although job creation was signalled for the thirty-ninth month running, the rate of growth ground to a near-standstill and was the joint-weakest during that sequence. Employment increased in the United States, Japan, India, Spain, Russia, Brazil, Australia and Ireland.

November saw further increases in both input costs and output charges. The pace of inflation for the former eased slightly, but accelerated for the latter.

ALCHEMPro News Desk (DS)