Global Manufacturing PMI at 53.2 in November, highest level since May 2011

J.P.Morgan Global Manufacturing PMI at 53.2 in November, up from 52.1 in October registered its highest level since May 2011. The headline PMI, a composite index produced by JPMorgan and Markit in association with ISM and IFPSM has signalled expansion for 11 successive months.

The faster improvement in overall operating conditions was underpinned by stronger expansions of production, new orders and further job creation.

Among the largest industrial regions covered by the survey, the PMI for the US bounced back to reach a ten-month high, after slowing sharply to a one-year low in October. Growth meanwhile remained solid in Japan and the UK, with the PMI in each of these nations at their highest levels since July 2006 and February 2011 respectively. The modest and fragile recovery in the euro area continued, while the China PMI also posted slightly above the 50.0 mark.

Global manufacturing output and new business both expanded at the quickest pace since February 2011. The trend in international trade also showed further signs of improvement, as the growth rate of new export orders hit a 32-month record.

Employment rose for the fifth successive month in November. However, the rate of job creation remained only moderate. Staffing levels were increased in the US, Japan, the UK, India, Taiwan, South Korea, Turkey, Vietnam, Canada and Mexico. Job losses were reported in the euro area, China, Indonesia and Brazil.

A sign that current capacity was being tested by the combination of solid demand growth and lacklustre job creation was provided by a third successive increase in backlogs of work. Outstanding business rose at the quickest pace since March 2011.

November saw average input costs rise at a pace close to October's one-and-a-half year peak. Purchase price inflation was also broadly in line with the long-run survey average.

Companies reported some success in passing on higher input costs to their clients, as average factory gate prices increased for the fourth month in a row.

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