In April, the global manufacturing sector maintained its upward trajectory, driven by increased output and new orders, signalling sustained recovery, according to the latest data from the JP Morgan Global Manufacturing PMI.
The report revealed a continuation of growth, despite a slight dip in the index to 50.3 from March’s 20-month high of 50.6.
This marks the third consecutive month that the index has remained above the neutral 50.0 mark.
Bennett Parrish, global economist at JP Morgan, said: “After climbing 2.5-points over the prior three months, the global manufacturing output PMI slipped 0.4-point in April.”
Both output and new orders contributed to the expansion, indicating a positive trend in production.
However, there were mixed signals in other components of the PMI, with stocks of purchases and supplier lead times showing contraction while employment remained unchanged.
The growth in manufacturing production was evident across various regions, with notable expansions seen in China, the US, India, and Brazil.
However, Europe remained a weaker performer, with several nations experiencing contractions, including Germany, the UK, and France.
Despite the overall positive outlook, there were challenges evident in certain sectors, particularly in investment goods where output contracted for the first time in three months.
However, both consumer and intermediate goods sub-industries witnessed increased output.
Furthermore, global manufacturers expressed optimism for the future, with forecasts indicating higher production levels in the coming months.
This sentiment was supported by a slight increase in new export orders, signalling a positive shift in international trade volumes for the first time in over two years.
The data also highlighted emerging price pressures, with both input costs and selling prices experiencing accelerated rates of increase.
Input cost inflation reached a 14-month high, while selling prices saw one of the steepest increases in the past year.
Despite these challenges, global supply chains managed to largely overcome potential disruptions, with average vendor lead times improving for the fourteenth time in the past 15 months.
Employment in the sector remained unchanged overall, with job growth in some nations offset by losses in others.
For instance, while the US, Japan, and India saw job growth, China, the euro area, and the UK experienced declines.
“While a tick down in the new orders index is slightly concerning, the employment index showed stability in April. At the regional level, improvements across Europe and in Asia continue to close some of the gap with the US,” Parrish remarked.
