The global manufacturing sector experienced an upswing in May, with significant improvements in both output and new orders, according to the JP Morgan Global Manufacturing PMI.
The composite index, which is produced by JP Morgan and S&P Global Market Intelligence in collaboration with ISM and IFPSM, climbed to a 22-month high of 50.9, indicating growth for the fourth consecutive month.
“The May global manufacturing output PMI rose 1.2 points to 52.6, its highest level since December 2021,” said Bennett Parrish, Global Economist at JP Morgan.
“At this level, the PMI is consistent with solid 2.5%ar growth in global factory output,” he noted.
Key regions such as the United States, China, and the United Kingdom saw accelerated output growth, while contraction rates eased in Japan and the euro area.
“Gains in the new orders and employment PMIs also point to an upturn moving ahead. The base of the revival is broadening, with the survey improving across most of the major economies,” Parrish stated.
In May, manufacturing production increased at its fastest pace since December 2021, marking growth in the intermediate goods industry to a near three-year high and the investment goods sector expanding for the third time in the past four months.
Despite a slight deceleration, consumer goods remained the top-performing category overall.
The recent expansion in global manufacturing output was driven by rising new business intakes, the completion of backlogs, and enhanced international trade flows.
New business rose for the fourth consecutive month, achieving the highest growth rate since March 2022.
For the first time in over two years, all three sectors—consumer, intermediate, and investment goods—registered concurrent growth.
International trade volumes increased for the second month in a row in May, reversing a prolonged period of contraction.
Growth was particularly notable in the consumer and investment goods sectors, which offset a slight decline in the intermediate goods category.
Larger nations such as China, the US, India, and Brazil reaped the benefits of improved global trade flows.
The positive trends in manufacturing conditions also influenced the labor market and business confidence.
May recorded job creation for the second time in the past three months, with the rate of growth being the highest since August 2023.
The US, Japan, India, and Brazil saw employment increases, while staffing cuts were reported in China, the euro area, and the UK.
