Monday, 4 July 2011

Global manufacturing slowed in June

The global manufacturing sector slowed in June but the slowdown may already be about to end.

Last week's reports on purchasing managers surveys showed that manufacturing activity on the whole slowed in June. The JPMorgan Global Manufacturing PMI fell to 52.3 in June from 53.0 in May. Manufacturing slowed in most major economies around the world, the United States being a notable exception.

Manufacturing purchasing managers indices
Euro area58.054.652.0

Much of the slowdown in global manufacturing in the last two months was the result of supply disruptions in Japan following the earthquake and tsunami in March.

However, Japan itself is already starting to recover. After falling 15.5 percent in March, industrial production has risen by 1.6 percent and 5.7 percent in April and May respectively.

Japan's recovery should remove an important drag on the global manufacturing sector.

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