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Global Manufacturing Rolling Over: Over 70% Of Global PMIs Decline In February

Tyler Durden's picture


Moments ago we got the two latest monthly US manufacturing surveys in the form of the downbeat Markit PMI, according to which "the February data add to signs of distress in the US manufacturing economy", offset by the traditionally more optimistic ISM, whose chair Bradley Holcombe went so far as to say "US manufacturing may have found a bottom." Then overnight we also received the latest Markit manufacturing sentiment update from around the globe. Suffice it to say, it did not support Holcombe's cheerful "bottom hunting" outlook.

As the below table shows, 28 regions have reported so far. Seven saw improvements in their manufacturing sectors in February, twenty recorded a weakening, and India was unchanged. This means that over 70% of the world saw manufacturing sentiment deteriorate in February compared to January.

In terms of actual expansion, there were 21 countries in positive territory and 7 in negative. In particular, Greece moved from neutral to contraction territory, while Taiwan dropped below breakeven from expansion.

And as JPM Global Manufacturing PMI tumbles to 50.0 - the lowest since Nov 2012...

As David Hensley, Director of Global Economic Coordination at J.P.Morgan, said:

The Global Manufacturing PMI posted at the stagnation mark in February, further highlighting the fragility of global industry at the start of the year. Inflows of new business and production volumes barely rose, while the trend in international trade deteriorated.


Market conditions will need to improve in the short run if global manufacturing is to avoid falling back into contraction.

The biggest wildcard remains China where economists note that the fall in headline PMI was mainly driven by declining production and new orders, while inventory of raw materials improved. The government ascribed the deterioration in the manufacturing PMI to celebrations surrounding the Lunar New Year, however as BofA notes, "growth momentum of industrial activities could have further weakened in February."

Ultimately, the only relevant question is whether China can stabilize its economy, and lead to a recovery in global manufacturing which for the past 7 years has ultimately been a downstream function of how well China is doing. For now the answer remains nebulous at best.

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Tue, 03/01/2016 - 11:47 | 7256531 ZH Snob
ZH Snob's picture

South Africa is booming!

Tue, 03/01/2016 - 11:50 | 7256545 lemontree2
lemontree2's picture

Somehow this is bullish. Stocks soaring. Everything is awsome

Tue, 03/01/2016 - 11:54 | 7256572 valley chick
valley chick's picture

NOPE is the new HOPE!

Tue, 03/01/2016 - 11:52 | 7256558 bbq on whitehou...
bbq on whitehouse lawn's picture

South Africa has gone the way of the paso.

Tue, 03/01/2016 - 11:53 | 7256562 pillory-hillary
pillory-hillary's picture

scandanavia is skidding...two months of bad sledding

Tue, 03/01/2016 - 11:53 | 7256567 Vlad the Inhaler
Vlad the Inhaler's picture

wtf is going on with usdjpy this morning?

Tue, 03/01/2016 - 11:53 | 7256570 Chuckster
Chuckster's picture

I loves how "special" we are!  Thanks! Oby!

Tue, 03/01/2016 - 12:12 | 7256663 KnuckleDragger-X
KnuckleDragger-X's picture

A short bus in every driveway......

Tue, 03/01/2016 - 12:01 | 7256616 PerkyPooper
PerkyPooper's picture

yo, PMI doesn't mean nothing. We got Uber, Tinder, and Crack. what else could we need?

Tue, 03/01/2016 - 12:08 | 7256646 silverer
silverer's picture

It's nice to know that South Africa soundly outperformed the USA. Maybe that was the place the President was thinking about in his SOTU message.

Tue, 03/01/2016 - 12:29 | 7256737 LawsofPhysics
LawsofPhysics's picture

...and the "market" is rallying...


LOL!!  Good times in the casino...

Simply see things for what they really are folks.  Life is good.

Tue, 03/01/2016 - 12:43 | 7256807 Element
Element's picture

And it actually is, never been better for more.

Tue, 03/01/2016 - 12:39 | 7256791 yogibear
yogibear's picture

All is bullish as the central banksters do more of what's destroying the middle class and lower.

Debt at $19 trillion and climbing.

Some day reality hits.

Tue, 03/01/2016 - 13:14 | 7256971 JamaicaJim
JamaicaJim's picture

The Rigged Casino is rolling like a motherfucker today.....




...is this one fucked up time era we live in.....

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