The downturn in the global manufacturing sector moderated in October. The JPMorgan Global Manufacturing PMI� � a composite index produced by JPMorgan and Markit inGlobal PMI
association with ISM and IFPSM � rose for the second month running to reach 49.2, its highest reading during the current five-month period of contraction.
The sector continued to report declining volumes of production and new orders, although rates of contraction were slower than in the previous month.
Signs of excess capacity were present in the global manufacturing sector during October. This was highlighted by a further marked reduction in backlogs of work, which
fell for the seventeenth successive month and at the joint-fastest rate during that period.
Manufacturing is leading this global decline. Retail and services will follow.
I have very little to add here other than a note that this certainly was not unexpected in this corner.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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