The rates of expansion in global manufacturing output and new orders accelerated for the first time in six months in October. At 53.7, up from September's 14-month low, the JPMorgan Global Manufacturing PMI posted a reading consistent with a solid improvement in overall operating conditions. However, the headline PMI and the indices for output and new orders remained below their respective post-recession averages.
Manufacturing production increased for the seventeenth consecutive month in October, with the rate of expansion the fastest since June. Growth accelerated sharply in the US and China, hitting five- and nine-month highs respectively. Rates of increase also accelerated in the Eurozone, the UK, India, Turkey, Poland and Denmark. Meanwhile, Japan fell back into contraction, as output decreased for the first time since May 2009. Production also declined in Australia, Brazil, Taiwan and South Korea. nWithin the euro area, strong growth was recorded in Germany, France, Italy and Austria during October. Rates of expansion were only slight in Spain, the Netherlands and Ireland, while the recession in Greece deepened.
Global manufacturing new orders rose for the sixteenth successive month in October. Amongst the largest nations covered by the survey, growth picked up strongly in the US and China and also accelerated (but to lesser extents) in the Eurozone, the UK and India. In contrast, new orders to Japanese manufacturers contracted sharply and at the steepest pace for one-and-a-half years.
October saw new export orders rise for the sixteenth month in a row, with the rate of growth accelerating to its fastest since July. The US and nearly all of the European nations saw a jump in new export orders, with PMI new export orders indices in most rising by at least two points. Asian economies generally saw bnew exports decline or, at best, reported only modest growth. October saw faster job creation in the global manufacturing sector. The rate of increase was sharper than September's sixmonth low and slightly above the average for the current period of jobs growth (which began in January). Amongst the largest industrial regions covered by the survey, staffing levels rose in the US, the Eurozone, the UK and India, were unchanged in Brazil, but fell in China and Japan.
Input price inflation accelerated to a five-month high in October, reflecting increased raw material costs. There were also reports that supply-chain pressures, resulting from low stock holdings at suppliers and shortages of certain commodities, were driving costs higher. Input price inflation was steepest in China, the Netherlands and the US. Only Japan reported a decrease in purchasing costs.