Global manufacturing growth revives from 1½ year low, but supply shortages and inflationary pressures persist
Worldwide manufacturing growth picked up in February after being subdued to a one-and-a-half year low in January due to the Omicron wave. However, the overall rate of expansion continued to be constrained, limited by a combination of supply chain delays and worker shortages. Prices rose at an increased rate - one of the highest in a decade - as a result.
Although these supply constraints showed some signs of easing, they will likely be exacerbated again by the Ukraine war, as will the upward pressure on prices.
- The JPMorgan Global Manufacturing Purchasing Managers Index (PMI) rose from a 15-month low of 53.2 in January to 53.6 in February
- Global economy continued to show encouraging resilience in the face of the Omicron wave of the COVID-19 pandemic.
- Global factory output growth remains subdued
- Demand exceeds production: New orders rose to the greatest extent since last October, with the latest new orders index reading of 53.5 running above the pre-pandemic long-run average of 52.6
- Recovery led by Europe, Omicron impact looks muted cross much of Asia
- Output constrained by staff and raw materials shortages
- Supplier delivery delays ease to lowest since January 2021
- Greatest period of inventory building in the past five months recorded over the global PMI's 25-year history