Breaking down February Manufacturing PMI

We had a mixed picture in global PMI manufacturing data that came out today. We’ll highlight some areas of note, including the Eurozone, US, UK, Canada, China, and India.

Eurozone Final Manufacturing PMI: 48.5 (no change)

Final Eurozone Manufacturing PMI came in at a two-month low, continuing into contraction at 48.5 after the prior month reading at 48.8. The Manufacturing Output Index, however, hit a 9-month high at 50.1, reaching back into slight expansion.

Eurozone countries ranked by Manufacturing PMI:

• Italy 52.0 10-month high

• Greece 51.7 9-month high

• Ireland 51.3 4-month high

• Spain 50.7 8-month high

• Netherlands 48.7 2-month low

• France 47.4 (flash: 47.9) 4-month low

• Austria 47.1 3-month low

• Germany 46.3 (flash: 46.5) 3-month low

UK Final Manufacturing PMI: 49.3 (fell 0.1)

A modest slowing with downturn in output stopping and inflationary pressures easing. Costs rose the least since July of 2020.

US ISM Manufacturing PMI: 47.7 (fell 0.3)

Manufacturing contracted in February, hitting 47.7. But this reading was 0.3 percentage points higher than 47.4 recorded in January. This is the fourth month of contraction, and a continuation of the downtrend since June of 2022.

From ISM: The ISM Prices Index registered 51.3 percent. In February, eight industries — in the following order — reported paying increased prices for raw materials: Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Fabricated Metal Products; Nonmetallic Mineral Products; Petroleum & Coal Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Machinery.

Canadian Manufacturing PMI: 52.4 (rose 1.4)

Canadian manufacturing growth accelerated in February. We saw faster gains in both output and new orders. Employment continued to rise, and inflation rates weakened.

Caixin China General Manufacturing PMI: 51.6 (up 2.4)

China’s manufacturing sector returned to growth in February as the reopening helped to increase the ease of doing business and consumer demand was also on the rise.

India Manufacturing PMI: 55.4 (fell 0.1)

Robust manufacturing growth and new orders helped to keep PMI in expansion, but there was a slowdown in the rate of international sales.

Closing thoughts

We continue to see some mixed signals from the global economy. China seems to be starting a new credit cycle. India remains resilient along with Canada. But the US and UK are in contraction and so is about half of Europe.