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Global Manufacturing Contracts 5th Consecutive Month

  • Written by Syndicated Publisher No Comments Comments
    November 7, 2012

    Markit reports global manufacturing contracts for fifth consecutive month

    The downturn in the global manufacturing sector moderated in October. The JPMorgan Global Manufacturing PMI™ – a composite index produced by JPMorgan and Markit in
    association with ISM and IFPSM – rose for the second month running to reach 49.2, its highest reading during the current five-month period of contraction.

    The sector continued to report declining volumes of production and new orders, although rates of contraction were slower than in the previous month.

    Signs of excess capacity were present in the global manufacturing sector during October. This was highlighted by a further marked reduction in backlogs of work, which
    fell for the seventeenth successive month and at the joint-fastest rate during that period.

    Global PMI

    Manufacturing is leading this global decline. Retail and services will follow.

    I have very little to add here other than a note that this certainly was not unexpected in this corner.



    Images: Flickr (licence attribution)

    About The Author

    Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.  Visit Sitka Pacific’s Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

    You are currently viewing my global economics blog which typically has commentary every day of the week. I am also a contributing “professor” on Minyanville, a community site focused on economic and financial education.  Every Thursday I do a podcast on HoweStreet and on an ad hoc basis contribute to many other sites.

    When not writing about stocks or the economy I spend a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com.