The United States, Japan, China, Germany, United Kingdom, France, Italy, Brazil, and South Korea are now all in a manufacturing contraction, which resulted in a plunging Global Manufacturing PMI for June 2012. These are 9 of the top 11 manufacturing countries and represent 69.6% of the Global PMI. India continues expanding and data was not available for Canada. The Eurozone PMI in aggregate is also in contraction.
JPMorgan Global Manufacturing PMI The current reading of 48.9 (-1.7) indicates a global manufacturing slowdown at a faster rate into an actual contraction. The PMI latest peak was 57.4 in February 2011. The post-recession high has been 57.7 in April 2010. The post-recession low was 49.7 in November 2011 before this latest reading. Historical back data has been slightly revised, only the latest 7 months of revisions are reflected on chart. The general trend is not affected by the revisions.
David Hensley, Director of Global Economics Coordination at JPMorgan, said, “The global manufacturing PMI fell below 50 for the first time since last November and only the second time in this expansion. Inventory adjustments appear to be driving the contraction in manufacturing, with the PMI showing that the rate of stockbuilding (finished goods) remains quite elevated amid sluggish gains in final expenditures.”