J.P. Morgan Global Manufacturing PMI Rises to 53.0 in September

The J.P. Morgan Global Manufacturing PMI rose to 53.0 in September from 52.3 in August, recording its highest reading since February 2022 and marking the fourteenth consecutive month above the 50 mark separating growth from contraction. The index is the result of a collaboration between J.P. Morgan, S&P Global, ISM, and IFPSM.

All five of its main components improved for the third consecutive month, with output growth registering its fastest pace since July 2021, while new order growth was the strongest in 55 months. Expansion extended to consumer, intermediate, and investment goods, with output and new orders rising in each.

New export demand grew for the second consecutive month at the fastest pace in over five years, and employment in the sector rose for the third month at the highest growth rate in 52 months. J.P. Morgan Global Economist Maia Crook said the index "continues to impress," but noted that "input and output price indicators remain sticky."

Crook attributed these price pressures to supply disruptions, rising transportation costs, and persistently high energy prices. Thailand recorded the strongest output growth, while India, Ireland, the Netherlands, Taiwan, and the United States posted notable expansions, and growth in mainland China was among the strongest since the pandemic. J.P. Morgan attributes part of the improvement to spending on AI infrastructure, defense equipment, and inventory restocking.

What do these terms mean?

Purchasing Managers' Index (PMI): A monthly survey of corporate managers summarizing manufacturing activity, where a reading above 50 indicates expansion and below 50 indicates contraction. Input prices: The cost of materials and energy purchased by factories. Output prices: The prices at which factories sell their products. Intermediate goods: Semi-finished goods used in the production of other goods.