In April, global manufacturing activity contracted for the first time since the beginning of the current year.
The mentioned result reflects the impact of factors such as falling orders and employment.
The JPMorgan Global Manufacturing Index in April was fixed at the 49.8 mark in April. In March, the corresponding figure was 50.3. In this case, the reading change is also largely due to uncertainty about the trade and tariff policies of the United States. The relevant factor has become a source of impact on business expectations and demand.
It is worth clarifying that a score below 50 means a contraction.
The future output index has dropped to its lowest level since October 2022. This indicator has also decreased by 4.5 points since the victory of Donald Trump in the United States presidential election in November last year.
A gauge of factory output prices edged up to the highest level since March 2023. In April, input prices were stable. However, on average, the corresponding figures were higher than in the previous two years.
New orders contracted for the first time since December 2024. A measure of export orders fell by 2.8 points. This is the biggest drop since March 2022. At 47.2, the gauge is the weakest since August 2023.
Currently, manufacturers are responding to changes in supply and demand by trimming headcounts. As uncertainty about the global economic outlook persists and shows no signs of abating, volatility in the context of the mentioned indicators is highly likely to continue.
The measure of global factory employment contracted for the ninth month in a row. This is the longest decline since the coronavirus pandemic.
As we have reported earlier, US Economy Adds 177,000 Jobs.
