Posted on 09 Jul 2024
The global manufacturing Purchasing Managers' Index (PMI) dipped in June to reach 49.5, staying the contraction zone for the third month and down another 0.3 point on month, according to the latest release of the China Federation of Logistics & Purchasing (CFLP) on July 6.
For the first half of this year, the global PMI averaged 49.7, up 0.9 point compared with the same period last year, indicating the better performance of the world economy this year, the release showed.
For June, the growth in manufacturing industries in Asia kept stable, with the manufacturing PMI staying above 51 for the fourth consecutive month at 51.1, the same level from the previous month.
As for the major countries in Asia, the manufacturing PMI in China was unchanged on month last month, while the index for the manufacturing sector in India increased by 0.8 point on month to 58.3, the CFLP release showed.
For June, the manufacturing PMI of major ASEAN countries stayed in the expansion zone, with that of Vietnam seeing a significant on-month rise of 4.4 points to reach 54.7, while those of Indonesia, the Philippines and Singapore all decreased by varying degrees compared with the previous month, according to the CFLP.
The manufacturing industry in Asia enjoyed a steady recovery over the first half of this year, which became the main driver for the recovery in global markets when the manufacturing sectors in Europe, the Americas and Africa slowed gradually, the CFLP pointed out.
The recovery in European manufacturing was rangebound, with the European manufacturing PMI standing at 48 in June, reversing down by 1 point on month after the rise during May. The PMIs for most major countries in the region slipped from the previous month except for the on-month rise in Russia.
Last month, the manufacturing PMI for Africa's major economies decreased for the second month to 48.6, down by 0.2 point from that for May, suggesting the weakness in the recovery of Africa's economy under the pressure of high inflation.
However, market participants are optimistic about the economy in Africa thanks to further advances in African economic integration, the strengthening role of the African Free Trade Area and the continuous investment in regional infrastructure, the CFLP noted.
Manufacturing industries in the Americas weakened continuously in June, with the index for this sector down for the third straight month at 48.9, lower by 0.2 point on month. Among the major countries, the manufacturing PMIs in Brazil and Mexico stayed above 50, while that of Canada stayed unchanged in the contraction zone on month.
For June, the manufacturing PMI of the United States fell by another 0.2 point on month to 48.5 – staying below 50 for the third month – which reflected the weakness of the country's economy.
The index for manufacturing production in the country fell into the contraction zone last month after standing above 50 for the prior three months, according to the CFLP release. The index of new orders in the manufacturing sector still hovered below 50 in June, though it had improved somewhat compared with May.
Source:Mysteel Global
