Global Manufacturing PMI dropped to a six-month low of 54.1 in August 2021 compared to 55.4 in July as growth decelerated in the US and EU and contracted in Asia, according to JP Morgan and IHS Markit. With a value above 50, the PMI is now in its 14th month of global economic improvement.
The PMI for output declined to 51.9 in August against 54.4 in July denoting growth at a slower pace. New orders PMI also decreased from 55.3 in July to 53.6 in August as new export orders PMI fell from 52.7 in July to 51 in the previous month. The future output index remained strong at 64.1 in August with only a slight 0.1 change from 64.2 the preceding month.
The employment index dropped to 52 in August from 52.7 in July. Inflation remains a concern but grew at a slower rate with input prices at 70.4 and output prices at 60.1 in August compared to 71.2 and 60.3, respectively, in the previous month. Supply-chain disruptions increased freight prices, and increased input materials prices continued in August.
Eurozone manufacturing PMI declined to 61.4 in August from July’s 62.8 showing a continued expansion but at a declining rate. Growth at intermediate goods and consumer goods producers trailed investment goods manufacturers. The Euro area noted a positive outlook for 2022 but opinions eased to levels experienced 10 months ago, in November 2020.
The ASEAN PMI contracted further to 44.5 in August from 44.6 in July, now the third consecutive month. Each of the seven countries in the index recorded deteriorating economic conditions amid the ongoing COVID-19 outbreaks and lockdowns.