Posted on 08 Aug 2024
The global manufacturing Purchasing Managers' Index (PMI) slipped continuously for the fourth month in July to 48.9, with the on-month fall enlarging to 0.6 point as against the decrease of 0.3 point over the previous month, according to the latest release of the China Federation of Logistics & Purchasing (CFLP) on August 6.
The global PMI has been struggling in the contraction zone for the fourth month, and the accelerated fall in the index suggested that the recovery in the global economy has weakened, and the downward pressure on the economy has increased, the release pointed out.
The latest forecast of the International Monetary Fund (IMF) released on July 16 showed that global economic growth for 2024 may stay low at 3.2%, unchanged from its previous forecast in April, CFLP noted.
The growth of manufacturing industries in Asia slowed slightly in July, with the manufacturing PMI edging down 0.3 point on month to 50.8. However, the reading managed to hover in the expansion zone for the seventh month, indicating that manufacturing industry in Asia is still running smoothly, and emerging Asian economies remain the main driver of global economy.
Notably, the manufacturing PMI in China kept rangebound around 49.5, while the index for the manufacturing sector in India remained high above 58 in July despite an on-month dip of 0.2 point, according to the CFLP release.
For ASEAN countries, the manufacturing PMI in Vietnam kept stable in July, while that for Indonesia declined to the contraction zone last month at 49.5, down by 1.4 points from June, the release showed.
The manufacturing PMI for the Americas came in at 47.5 last month, down at a faster pace of 1.4 points on month as against the dip of 0.2 point over the prior month. The result marked a decline for the fourth consecutive month and touched the year's low, mainly due to the drop in the United States, where the index fell by 1.7 points on month to 46.8.
Canada also witnessed a significant fall in its Manufacturing PMI, with the index down 1.5 points on month to 47.8 in July, according to CFLP.
The European manufacturing PMI dipped by another 0.1 point on month to 47.9 in July. Among the major countries in Europe, the manufacturing PMI in Russia stood at a high level of 53.6, though it decreased by 1.3 points on month, and the index of the United Kingdom increased by 1.2 points from the previous month to 52.1.
However, the PMIs of Germany and France declined by varying degrees in July and struggled below 45, which weighed on the recovery in the European economy, CFLP warned.
The manufacturing PMI for Africa's major economies returned to the expansion zone last month to reach 50.1, higher by 1.5 points on month and ending the continuous fall over the prior two months. Particularly, the PMI of South Africa rose above 52 in July, mainly driving Africa's economic recovery, according to the release.
Source:Mysteel Global
