Global manufacturing PMI holds above neutral in April

Output increased in both the consumer and intermediate goods sub-industries. In contrast, investment goods output contracted for the first time in three months. Manufacturing production increased in 16 out of the 32 nations for which April data were available.

China, the US, India, and Brazil were among the larger industrial nations to see output expand. Europe remained one of the weaker performing regions, with eight of the nations to register contractions (Germany, the UK, France, Italy, Poland, Czech Republic, Austria and Ireland) located on the continent. Japan, Mexico, and Canada also saw production volumes decline, as per S&P Global.

Global manufacturing new orders expanded for the third successive month in April. That said, the rate of growth remained mild and eased slightly during the latest survey month. Consumer and intermediate goods producers saw new work intakes improve, in contrast to the investment goods category (where inflows deteriorated for the fourteenth straight month). Growth of total new business was supported by a slight increase in new export orders, the first-time international trade volumes have risen in over two years.

Global manufacturers also maintained a positive outlook for the sector, forecasting (on average) that production would be higher in 12 months' time. The forward-looking new orders to finished goods inventory ratio also remained in positive territory, despite easing slightly since March, reflecting signs that the current tepid growth of demand was still sufficient to deplete stock holdings. Inventories of purchases also fell in response to a slight drop in input buying activity.

April data provided further signs of price pressures building, as rates of increase in output charges and purchase prices both gained in strength. Input cost inflation hit a 14-month high, while the rate of increase in selling prices was among the steepest during the past year. Global supply chains continued to largely shrug off the constraints of the Red Sea crisis and other potential sources of disruption, with average vendor lead times improving for the fourteenth time in the past 15 months. Employment was unchanged in April, as jobs growth in nations such as the US, Japan, and India was offset by losses in China, the euro area and the UK.

Fibre2Fashion News Desk (DP)