The global manufacturing sector ended 2024 on a sombre note, with output and new orders declining in December after brief improvements in the preceding months.
The JP Morgan Global Manufacturing PMI, produced by JP Morgan and S&P Global Market Intelligence in collaboration with ISM and IFPSM, recorded a score of 49.6 in December, down from 50.0 in November.
Four of the PMI’s five components—output, new orders, employment, and stocks of purchases—indicated a deterioration in operating conditions.
Supplier delivery times, however, were a positive influence on the index. Manufacturing production dipped slightly, with December’s modest contraction capping off a stagnant fourth quarter.
Among the 30 nations surveyed, only 13 saw output growth, with India leading the pack, followed by the Philippines, Spain, Greece, Taiwan, and Canada.
In contrast, the broader eurozone experienced its steepest contraction in 14 months, with France, Germany, and Austria suffering the sharpest declines.
The US and UK also recorded significant downturns, with rates of contraction hitting 18- and 11-month highs, respectively. Japan saw a slight production decline, while China registered a mild uptick.
Sectoral data revealed a divergence in performance. Intermediate and investment goods industries experienced declines, whereas consumer goods production rose for the seventeenth consecutive month.
New orders followed a similar pattern, with growth in the consumer goods sector offset by declines in other categories.
Global trade remained weak, as international trade volumes fell for the seventh month in a row.
Only eight nations—Spain, Russia, India, Taiwan, South Korea, Indonesia, the Philippines, and Greece—reported growth in new export orders.
Business sentiment also softened, reaching a three-month low, which influenced hiring decisions. Employment fell for the fifth consecutive month, with job losses recorded in the euro area and China.
The US and Japan, however, saw modest employment growth.
Inflation trends diverged. Input cost inflation accelerated to a four-month high, while selling price inflation eased to its lowest level in nine months.
