Posted By Paul Tate, July 25, 2013 at 5:13 AM, in Category: Manufacturing Leadership Community
The latest indicators of global manufacturing activity from researchers Markit suggest an impressive improvement in U.S. industrial performance this month.
The U.S. flash manufacturing Purchasing Managers’ Index (PMI) jumped unexpectedly to 53.2 in July. A figure over 50 marks expansion. This is compared to just 51.9 in June and far better than market expectations of flat U.S. performance.
The underlying trends for the U.S. also looked stronger, with the PMI sub index for new orders rising from 53.4 in June to 55.1 in July – the largest increase since March – and new export orders expanding significantly from 46.3 to 52.3 this month.
Manufacturing Leadership Council members also confirmed their ‘cautious optimism’ for the U.S. industry’s future in our recent Council call on the Business Outlook for 2013, held earlier this month.
China, however, continues to see manufacturing sector contraction. The latest HSBC/Markit PMI for China fell to 47.7 in July, an 11-month low, and down from 48.2 June. Chinese figures for July manufacturing output, exports, new orders and employment also all deteriorated.
Eurozone manufacturing, meanwhile, has finally returned to growth this month with a PMI of 50.1, up from 48.8 in June. Again this was above market expectations. Though this is only just over the 50 point growth threshold, this is the first time the 17-nation Eurozone has reported any manufacturing expansion since January 2012. The Eurozone output sub-index also saw strong improvement – up from 49.8 in June to 52.3 in July, a 25-month high.
Has manufacturing in the U.S. and Europe finally begun a new growth trajectory as production activity returns to developed nations and global markets for western goods expand?
How do you see your company’s growth prospects for the rest of the year?
Written by Paul Tate
Paul Tate is Research Director and Executive Editor with Frost & Sullivan's Manufacturing Leadership Council. He also directs the Manufacturing Leadership Council's Board of Governors, the Council's annual Critical Issues Agenda, and the Manufacturing Leadership Research Panel. Follow us on Twitter: @MfgExecutive