World manufacturing conditions worsen for 1st time in 4 months in Apr

Though the rate of decline was marginal, the data provided evidence of further potential weakness.

Global trade conditions worsened, jobs were cut and business optimism slumped to a two-and-a-half year low.

The PMI, 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, fell to 49.8 in April, down from 50.3 in March.

Three of the five PMI components—new orders, employment and stocks of purchases—were at levels signalling contraction, in contrast to the trends in output and supplier delivery times, which were both consistent with improved operating performance.

The expansion in production was the fourth in successive months. However, the rate of growth has remained weak throughout this sequence, a release from S&P Global Market Intelligence said.

Output rose slightly in both the consumer and intermediate goods industries and was unchanged compared to one month earlier at investment goods producers.

India, Ireland and the Philippines saw the greatest increases in production during April. Expansions were also registered in China and the euro area, among others. The United States and Japan were two of the larger nations to see contractions.

New business fell for the first time in four months during April, with new export orders suffering its steepest decrease since August 2023. Rates of contraction in new export work accelerated to 18-, 16- and three-month highs in the consumer, intermediate and investment goods sectors respectively.

Of the 28 nations for which PMI new export orders data were available for April 2025, all except three (Germany, India and Greece) saw new export business decrease.

North America was particularly hard hit with the US, Canada and Mexico all seeing substantial drops in new export work, although the United Kingdom registered the steepest overall contraction.

Business optimism fell to its lowest ebb since October 2022. Reasons cited by companies for their gloomier outlooks were mostly centred around concerns about the impact of tariffs and protectionism on their order books, supply chains and pricing.

The level of global manufacturing business sentiment is not far off lows seen in 2019 when concerns about trade protectionism were also on the rise.

Manufacturing employment fell for the ninth successive month in April, with the rate of job losses the fastest since January. Staffing levels were reduced in China, the United States, the euro area and the United Kingdom, among others.

ALCHEMPro News Desk (DS)