Falling into shrinking global manufacturing is suffering

Abstract Data from Germany, Japan and the UK are very weak, while US data is hitting a 10-year low. IHSMarkit's Global Purchasing Managers' Index (PMI) fell to 49.8 in May, below the 50-point line. Image source: Photograph online month, global...

Data from Germany, Japan and the UK are all very weak, while the US data is hitting a 10-year low. IHS Markit's Global Purchasing Managers' Index (PMI) fell to 49.8 in May, below the 50-point line.

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Image source: Photographed network

Last month, global manufacturing hit its weakest performance since 2012, dragging down the global economy.

Data from Germany, Japan and the UK are all very weak, while the US data is hitting a 10-year low. IHS Markit's Global Purchasing Managers' Index (PMI) fell to 49.8 in May, the lowest level since 2009.

IHS Markit released the latest data showing that the final value of the US Markit manufacturing PMI in May was the lowest since September 2009. The final value of the output sub-index was the lowest since June 2016. The final value of the new order sub-index was from 2009. For the first time since the month, it has fallen into a shrinking range.

The US Manufacturing Purchasing Managers Index is a barometer of the overall development of the US manufacturing industry. The index usually has a critical point of 50. Above 50 is considered to be the expansion of the manufacturing industry, while below 50 indicates that the manufacturing industry is shrinking.

IHS economist Chris Williamson said that the US manufacturing industry experienced the toughest month in the past 10 years in May, and the slowdown in manufacturing expansion will further drag the US economy.

Earlier, the revised data released by the US Department of Commerce showed that the real GDP of the United States increased by 3.1% year-on-year in the first quarter of this year, down by 0.1 percentage points from the previously announced first estimate. Analysts believe that the economic growth prospects of the US in the second quarter are unclear due to factors such as the gradual weakening of the trade situation and the tax-reduction policy.

On Monday, European stocks fell and US stocks fluctuated.

“Recently in recent weeks, investor confidence has undoubtedly been unstable,” said Rathbones Chief Investment Officer Julian Chillingworth on Bloomberg Television. “Because of the unpredictability, there has been uncertainty about the way investors think.”

In the euro zone, manufacturing is still shrinking in May, indicating that the industry will drag down the economy in the second quarter as a whole.

Eurozone output fell for the fourth consecutive month, and the number of new orders fell further sharply, highlighting that manufacturing is still in its toughest period since 2013.

The specific data is: the final value of the manufacturing PMI for the euro zone in May is 47.7, the expected value is 47.7, the previous value is 47.7; the final value of the German manufacturing PMI in May is 44.3, the expected value is 44.3, the previous value is 44.3,; the French manufacturing PMI in May The final value is 50.6, the expected value is 50.6, and the previous value is 50.6.

The data shows that the German manufacturing PMI index in May is still close to the lowest level since 2012. Although German manufacturing is stabilizing, the decline in output and new orders has slowed.

The French manufacturer's operating conditions showed the first improvement since February. Although France's manufacturing output in May fell for the first time since July 2016, the strongest sub-sector is still consumer goods; investment producers are close behind, and its operating conditions have improved slightly. At the same time, after two months of deterioration, the health status of the intermediate product category stabilized in May.

Chris Williamson said that companies are cutting spending and reducing recruitment, as manufacturing purchases, inventories and jobs are falling as manufacturers are affected by falling demand.

Williamson added that the decline in the manufacturing index masked the slowdown in output and new orders, and there are still signs that the economic downturn will slow in June.

In Asia, the South Korean Purchasing Managers Index also showed a contraction, and survey respondents pointed to a slowdown in the semiconductor and automotive industries. The weak demand for new cars in the market is hitting automakers in Japan and other places.

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