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.


Key facts:
  • 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




Markit Press Release



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