Global Manufacturing PMIs Indicate Broad Expansion in September, European Inflationary Pressures Build
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- Global manufacturing expanded in September, with Eurozone PMI hitting 52.9.
- Asia strong: Taiwan 56.7, India 55.1, S. Korea 53.9, Thailand 54.3.
- US PMI 54.5 expands; UK PMI 51.9 continues 11-month upturn.
- Czechia PMI 53.5 solid; Russia 49.8 contracts, exports slump sharply.
Manufacturing activity expanded across a broad range of economies in September, with many nations reporting Purchasing Managers’ Index (PMI) scores above the 50-point expansion threshold. Asian economies demonstrated robust growth, with Taiwan reaching 56.7, South Korea 53.9, India 55.1, and Thailand 54.3, all showing accelerated expansion and strong new order inflows. The Eurozone manufacturing PMI rose to 52.9, marking its highest level in over four years, driven by increased production and new orders, though individual member states like France (50.6) and the UK (51.9) experienced slower growth compared to August. A notable trend across several European economies, including the Eurozone, Spain (51.0), France, and the UK, was an acceleration in input and output price inflation, signaling building cost pressures.
The UK manufacturing sector continued its upturn in September, with the final Purchasing Managers’ Index (PMI) rising to 51.9 from 51.7 in August, marking the eleventh consecutive month of expansion. Separately, Russian manufacturing activity remained in contraction in September, though the downturn eased marginally as the PMI rose to 49.8 from 48.8. Despite the overall easing, new export orders declined at their sharpest rate since May 2022.
Manufacturing activity in Czechia maintained strong growth in September, with its PMI falling slightly to 53.5 from 54.1 in August, though remaining firmly in expansionary territory amid solid expansions in output, new orders, and employment. Separately, U.S. manufacturing activity continued to expand for the ninth consecutive month in September, despite a slight moderation. The Institute for Supply Management’s (ISM) manufacturing PMI edged down to 54.5 from 54.6 in August. The report also indicated mounting costs and rising prices, alongside a slowdown in the pace of production growth.