Posted By Paul Tate, December 05, 2013 at 7:16 AM, in Category: Manufacturing Leadership Community
Global industry growth rates rose strongly in November as manufacturing indicators around the world continued to tick upwards.
Manufacturing activity in the U.S. rose last month at its fastest pace since April 2011, according to the latest figures from the Institute for Supply Management (ISM). The U.S. Purchasing Managers’ Index registered a healthy 57.3 – up from 56.4 in October. A PMI figure over 50 marks expansion.
Even better news came in the forward-looking index for new orders in the U.S., which jumped a full three points in November from 60.6 to 63.6. This suggests a brighter future for U.S. manufacturing as it approaches the New Year.
Manufacturing in the 18-nation, single-currency Eurozone also continued to show steady improvement with an overall November PMI of 51.6. This is the highest level since June 2012 and the fifth successive month over the 50 growth threshold.
At a national level, while the French and Spanish manufacturing sectors are both still suffering some contraction, Italy saw its PMI rise to the highest level in over two and a half years at 51.4, Europe’s manufacturing powerhouse in Germany saw activity rise at the fastest rate in over two years, and the Netherlands and Austria expanded faster than at any time since the middle of 2011.
Outside the Eurozone, the U.K. also clocked up its highest level of expansion since February 2011 with an impressive PMI of 58.4 – one of the highest PMI figures around the world right now.
In Asia, Japan is finally seeing its manufacturing sector begin to recover more strongly on the back of increased export growth with a PMI of 55.1, the highest level in over four years. Even India, which has recorded contraction across its factory sector in recent months, saw its PMI rise above the 50 growth threshold in November to 51.3, its highest level for seven months.
China’s manufacturing activity however, continued to show only modest growth with a PMI of 50.8, down slightly from the 50.9 figure the month before.
On a worldwide scale, these national increases in activity have pushed the global manufacturing PMI up to 53.2 for November, compared to 52.1 the previous month, according to JP Morgan and industry researchers Markit. That’s the highest level since May 2011 and the eleventh successive month of expansion.
"November PMI data signal a further acceleration in global manufacturing production. Near-term momentum remains positive," said JP Morgan director, David Hensley in a staement.
If this momentum continues, 2014 looks set to be a strong year for the manufacturing industry around the world.
Written by Paul Tate
Paul Tate is Research Director and Executive Editor with Frost & Sullivan's Manufacturing Leadership Council. He also directs the Manufacturing Leadership Council's Board of Governors, the Council's annual Critical Issues Agenda, and the Manufacturing Leadership Research Panel. Follow us on Twitter: @MfgExecutive