Posted on 09 Dec 2024
The global manufacturing Purchasing Managers' Index (PMI) reached 49.3 in November, posting an on-month rise of 0.5 point and becoming the highest reading for this half of the year, according to the latest data compiled by the China Federation of Logistics & Purchasing (CFLP).
The result suggested that the global economy is steadily recovering, which conforms with the views expressed by the world's leading economic organizations, the CFLP noted.
The latest forecast issued by the Organization for Economic Co-operation and Development (OECD) released earlier this week showed that the global economy may grow by 3.2% in 2024, unchanged from its forecast in September, while the growth rates for 2025 and 2026 may remain stable at 3.3%, as reported.
The steady expansion of the Asian economy and the recovery in the Americas contributed to the growth in the global economy, the federation pointed out in the release.
For November, the manufacturing PMI in Asia rose for the third consecutive month to stand at 51.2, up by 0.2 point on month and staying in the expansion zone for the eleventh consecutive month.
Among the major countries in Asia, China's PMI for the manufacturing industry registered 50.3 in November after an on-month rise of 0.2 point and staying above the threshold of 50 for the second month. Elsewhere in the region last month, the manufacturing PMI in South Korea increased by 2.3 points on month to 50.6, while the index in India stayed at a high level of 56.5 though it had retreated by 1 point from October.
As for the ASEAN countries, the manufacturing PMIs for Thailand, Singapore, Philippines and Vietnam stayed above 50 in November, the release showed.
The economic recovery in Asia overall may remain on track with the improved performance of the manufacturing industry, but the divergence in the strength of the recovery among and between countries in the region, combined with the uncertainties plaguing the global economy and world trade, may have a negative impact on local performance growth, the CFLP warned.
Manufacturing in the Americas recovered in November, with the overall PMI up 1.7 points on month to touch a six-month high of 49. Manufacturing PMIs in Canada and Colombia increased in November and stayed above 52, while the index in Brazil remained above 52 despite an on-month dip.
After struggling below 48 during the previous five months, during November the PMI for the manufacturing industry in the United States recovered to 48.4, rising by 1.9 points from October. The sub-index of new orders in the country experienced significant on-month growth to exceed 50, while that of production was still below 47 after the slight rise on month, indicating the weakness in the recovery in production, according to the release.
The United States economy still faces serious debt problems, and the pressure of inflation remains. Meanwhile, the new Trump administration may raise tariffs, which may bring more uncertainty to its economic recovery, the CFLP observed.
The economic recovery in the Europe and Africa weakened however, with the manufacturing PMI in Europe recorded at 47 in November, slipping by 0.7 point on month and staying below 48 for the third month. Among the major countries, the PMIs of the manufacturing sectors in the United Kingdom, France and Italy decreased by varying degrees and remained in the contraction zone. The index for Germany kept stable, though at a low level of 43.
Africa's manufacturing PMI continued to weaken in November to reach 49.2, down 0.2 point on month. The decrease was mainly blamed on the significant retreat in South Africa, where the manufacturing PMI dropped by 4.5 on month to 48.1, according to the release.
Source:Mysteel Global
