Global manufacturing growth accelerates in August

Global manufacturing activity accelerated in August, according to the J.P. Morgan Global Manufacturing PMI compiled by S&P Global Market Intelligence. The headline index rose to a three-month high of 52.3, marking the 13th consecutive month above the neutral 50.0 threshold. Growth was primarily driven by the consumer goods sector, with output expanding in 20 of the 32 countries surveyed, including mainland China, the US, the euro area, Japan, the UK, India, and South Korea.

While new export orders rose at their fastest pace in six months, trade volumes declined in the US, Canada, and Mexico. Employment growth reached its fastest pace in three years, and business optimism reached its joint-highest level since February. Although cost and supply chain pressures persist, input price inflation slowed to a six-month low.

In the United States, the Kansas City Fed reported that manufacturing activity in the Tenth District grew at a slightly faster pace in August, with the composite index rising to 10 from 9 in July. Gains in paper and printing manufacturing helped offset slower growth in durable manufacturing. While new orders rose, the employment index for the district slipped to 0. Approximately 39% of firms in the region cited technology improvements as a primary factor allowing them to increase production without adding additional workers.