One-Chart Update Of Global Manufacturing

Tyler Durden's picture

Following today's crash in the US Manufacturing ISM, we now have the following snapshot of global manufacturing: only three countries are currently in contraction (sub 50 PMI) mode: Australia, Russia and France. Look for many more to join them if today's US print is a harbinger of things to come to the global manufacturing space.

We already commented on the US manufacturing tracker. Here is Bank of America discussing the rest of the world.

On the first workday of a new month, global PMI manufacturing surveys are released around the world. That gives us an early read on the state of manufacturing. As the nearby table shows, out of the 22 countries that have reported so far, 13 reported improvements in their manufacturing sectors in January, while 8 recorded a weakening in their manufacturing sector and 1 was unchanged. A reading above 50 reflects expansion while below 50 indicates contraction. In this regard, there were only 3 countries in negative territory and 19 in positive. Of particular mention, Greece shifted from contraction to expansion.

Yeah, that Greek print: fade it, because the country which so many expect to enter a Grecovery in 2014, may already be in Grecession: "In contrast to expectations of a 0.6 percent recovery after six years of recession, the Greek economy may in fact not grow this year and could even post a small contraction, the Foundation for Economic and Industrial Research (IOBE) claims in its latest quarterly report that was made public on Thursday."

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Bobbyrib's picture

The US Manufacturing Renaissance can't be stopped. /sarcasm.

camaro68ss's picture

When do the margin calls start

Bobbyrib's picture

Good question, I wonder if the market is as leveraged as it was a few months ago.

Dapper Dan's picture


February 03, 2014

Margin Debt Hits All-Time High in December Prelude to a Crash by MIKE WHITNEY   Stock market crashes are always connected to massive leverage, loosey-goosey monetary policy and irrational exuberance (“excessive risk taking”), the toxic combo that presently rules the markets. The Federal Reserve is invariably the source of all bubblemaking and financial instability.
Winston Churchill's picture

Well lets see.

The reason the last Renaissance occurred was a mass die off by the serfs.

Anyone for a nice pandemic ?

homiegot's picture

Both United States coasts would be good.

666's picture

What contraction? The US leads the world in manufacturing poverty!

kralizec's picture

What is this manufacturing of which you speak?  If it is statist bullshit, yeah, that's at all-time highs!

TheGardener's picture

What is Australia manufacturing ? Some mining and processing
included for sure because all the big cities business centers have is services to the mining industry such as headquartering, insurance, banking and other money changer activities. Plus the usual consumers and beach squatters.

Seriously, I lived in Perth W.A. and the next person working
a real job was 1000 miles off in a mine.

tallen's picture

CNBC: "We're off the lows!"

TruthInSunshine's picture

cnBSc - "There's plenty of dry powder margin debt on the sidelines."

John Law Lives's picture

Hungary must be cranking out the Goulash...

Sweden must be cranking out the Snus...

disabledvet's picture

I think this is a FAR more serious situation than is being reported on. Forget mere "gold stacking" problems are now "stacking" (simply going unresolved...or more to the point ignored) and at some point the market will reset the system.

Cash, short term debt, treasuries...this is a very dangerous situation and there are Geopolitical overtones here.

The Uberbowl is now over and done up the Olympics.
That better not be the spark that lights the flame.

Bobbyrib's picture

In  all seriousness, when it is affordable and available I try to buy American made products.

Caveman93's picture

When you do....start here would be my first suggestion! 

redux2redux's picture

France ?!

Are you kidding me, they increased manufacturing!!!

I thought that they we too busy kidnapping executives...

falak pema's picture

thats included in the index! 

Its called start up managerial engineering.

Element's picture

Believe it or not, from anecdotal observation, the slow down within Australia was from mid-year to about October. Since November things have got a lot better than they were. I'm seeing much more activity now. The continuing drag is mostly in fuel costs, which are the highest they have ever been, especially with reference to the USD and US fuel prices, and the thus baked-in inflation taking away purchasing power, which is still to play out.

The AUD is hammering us, if up, or if down. If the dollar is high it kills manufacturers and jobs, if the dollar falls, and oil does not, the fuel cost rockets upward, and triggers inflation, drops consumption, and snuffs the jobs anyway.

The only solution is for TAPIS oil to come down with the AUD.

Village-idiot's picture

With all of the recent oil discoveries in Australia, the future looks very good.

If Australia can just keep their national debt under very tight controls they'll be in very good shape in a few years.

TheGardener's picture

" With all of the recent oil discoveries in Australia, the future looks very good."

Don`t ever count out Australia`s false friends, commodity dollars thrown under the bus at the first whims of correctional monetary facilities.

Why us, we are your friends? Cause we can...

Element's picture

Frankly, I would not hold my breath, these things move very slowly in Australia, especially when the economics of development and extraction look so marginal or risky, at least initially. We'll see a lot higher prices and many years before such oil potential is seriously pursued in volumes that make a difference.

Winston of Oceania's picture

I wonder where Iceland is on the chart?


Village-idiot's picture

I'm afraid, now there are bankers in jail in Iceland, all economic news is completely ignored by the media.

We wouldn't want the public to understand that we really don't need the current geniuses that are running the world, would we? That, in fact, we'd be better off without them.

Village-idiot's picture

What I find so amazing about the above chart is, which country is NOT on the list; the USA's biggest trading partner.


(Clue : It's the country directly to the north of them.)

tip e. canoe's picture

the country directly to the south isn't either.

funny that.