Posted on 07 Feb 2025
The global manufacturing Purchasing Managers' Index (PMI) increased for a third month in January to reach 50, up by another 0.5 point on month, according to the latest data compiled by the China Federation of Logistics & Purchasing (CFLP).
The result pointed to a steady recovery in global manufacturing at the beginning of the year, laying a solid foundation for future upward movement in the global economy in 2025, the federation observed.
The latest forecast of the International Monetary Fund released in mid-January showed that global economic growth this year may reach 3.3%, higher by 0.1 percentage point from its previous estimate in October 2024, the CFLP noted.
However, CFLP warned that the global economy still faces many challenges this year, such as insufficient demand momentum, ongoing geopolitical conflicts and escalating trade friction.
Last month, the manufacturing PMI in Asia stayed in the expansion zone for the thirteenth consecutive month and stood at 50.7, though it had slipped by 0.4 point from December.
Among the major countries in Asia, China's PMI for the manufacturing sector retreated with the impact of the Chinese New Year holiday, while the index for India witnessed an on-month rise of 1.3 points to reach 57.7.
As for the ASEAN countries, the manufacturing PMIs for Indonesia, Singapore and the Philippines hovered above the threshold of 50, while those for Malaysia, Myanmar and Vietnam were below 50, according to CFLP.
The steady development of China's economy remains the cornerstone of economic stability in Asia, the federation said. For 2025, China's economy may increase by 4.6% on year, according to the IMF, higher by 0.1 percentage point from its forecast last October.
Manufacturing in the Americas recovered to enter the expansion zone in January at 50.9, up for the third straight month and rising by another 1.3 points from December, the CFLP noted, adding that this ended nine months of contraction.
Last month, the manufacturing PMI in the United States grew by 1.7 points on month to reach 50.9, while the indices of production and new orders were higher at around 52, with the on-month rises being more than 2 points.
The accelerated recovery in manufacturing in the US had encouraged the Federal Reserve to slow the pace of interest rate cuts, though the additional tariffs Washington has imposed on other countries may have some impact on the country's economy, the federation remarked.
The PMIs in Brazil and Colombia in January increased by varying degrees to sit above 50, while the index for Canada also stayed above the 50-mark last month – despite an on-month dip of 0.6 point – to stand at 51.6.
The manufacturing PMI in Europe reached 47.8 in January, rising by 1 point on month and ending the fall of the prior two months. The manufacturing industry in this region remained under pressure, mainly due to the weak performances of major countries. Last month, the PMIs for the manufacturing sectors in Germany, United Kingdom and France remained mired in contraction despite some rises compared with the previous month.
The manufacturing PMI in Africa returned to the contraction zone in January at 49.4, down by 0.8 point on month, the release showed. The decrease was mainly blamed on the poor performance of South Africa, where the PMI slipped for a fourth month in January, with the index falling below 46.
Source:Mysteel Global
