Tuesday , 5 December 2023

Telling It Like It Is: Latest PMIs Reveal Truth About the Global Economy

The second half of the year has begun, and…one of the best leading indicators that can shed light on the health of the economy is the purchasing managers index (PMI). The latest local readings of the manufacturing PMI for countries around the world collectively…give investors a critical insight into the pace of economic growth by month [and they can be found below.] Words: 550

So says Sam Ro (www.businessinsiders.com) in edited excerpts from his original article.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

Ro goes on to say, in part:

PMIs are based on monthly surveys of carefully selected companies. These provide an advance indication of what is really happening in the private sector economy by tracking variables such as output, new orders, stock levels, employment and prices across the manufacturing, construction, retail and service sectors.

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The PMI surveys are based on fact, not opinion, and are among the first indicators of economic conditions published each month. The data are collected using identical methods in all countries so that international comparisons may be made.

[From Frank Holmes in a post on www.usfunds.com] Manufacturing around the world weakened in June, according to the JP Morgan Global Manufacturing Purchasing Managers’ Index (PMI). Its reading of 48.9 was the lowest in three years and the first dip below 50 since September 2011. The current reading is also below the three-month moving average for the second month in a row. As you can see on the chart, PMI crossed below the three-month in May.

Global PMI lowest reading in three years 

[From Eric Platt in a post on www.businessinsiders.com] Below we present two maps. First, the world map updated with revised June PMI results. You’ll notice the sea of red in Europe has moderated somewhat, but growth in Eastern Europe and Asia declined — and even contracted in some countries.



And the second, with May PMI figures.




[According to Joe Weisenthal, in a post also on www.businessinsider.com,] “the change in the New Orders Index [for the U.S. as shown in the chart below from the latest SMI report] compared to the previous months was one of the worst months in history. The last time there was a worse decline, it was right after 9-11 and the time before that it was in the early 80s.” [Also read this article]


ISM New Orders


Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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