Wahyu Dwi Anggoro
IDXChannel - The global manufacturing sector ended 2023 on a lacklustre footing. December saw production decline for the seventh successive month as intakes of new business suffered a further contraction.
The JP Morgan Global Manufacturing PMI – a composite index produced by JP Morgan and S&P Global in association with ISM and IFPSM – posted 49.0 in December, down from 49.3 in November, to remain below the neutral 50.0 mark for the sixteenth consecutive month.
Manufacturing production contracted at a slightly quicker pace in December, with the latest decline centred on the intermediate goods sector. In contrast, producers of both consumer and investment goods saw expansions. Overall output has decreased 13 times in the past 17 months.
Data broken down by nation signalled contractions in output in all except seven of the 29 countries for which December readings were available. China, Colombia, Greece, Indonesia, Mexico, the Philippines and Russia were the nations to register growth.
US manufacturing output decreased for the first time in four months, while Japan posted its seventh successive month of contraction. The euro area remained the main source of weakness, however. Manufacturing production across the currency bloc fell (on average) for the ninth month running, with the downturns in Germany, France, Austria and the Netherlands especially severe.
The other European nations covered by the survey fared similarly, with marked contractions seen in the UK, Poland and Czechia.
“The global manufacturing output PMI slipped 0.4-point in December, and ends 2023 in modest contraction territory. Last month’s decline was broadly based across economies. Output slipped in Europe after a promising rise in November, and the US took a step downwards. Global new orders and employment also ticked down last month, falling 0.4-point and 0.5-point respectively. Future output was one of the few bright spots in the report, alongside a modest firming in indicators of pricing and delivery times," Maia Crook, Global Economist at JP Morgan, said in a media release on Tuesday.
December saw global manufacturing new business intakes decline for the eighteenth month in a row, with reductions signalled across the consumer, intermediate and investment goods industries. International trade flows also deteriorated, as the downturn in new export orders was extended to 22 months. (WHY)
