Global manufacturing output increased in January, according to S&P Global reports, though new orders declined in the United States and the Eurozone.
China’s manufacturing purchasing managers index rose to its highest level since October, while the United States matched its greatest output since 2022. The Eurozone’s manufacturing PMI index also rose from December, but remained in negative territory.
“Manufacturing production in China increased at a quicker rate in the opening month of the year, underpinned by rising new business inflows. Companies often mentioned that greater client interest and increased customer bases had supported the latest uptick in new orders,” according to S&P Global’s RatingDog China General Manufacturing PMI report.
China’s PMI was 50.3, rising from 50.1 in December. Its business confidence dropped to a nine-month low, however.
In the U.S., the PMI index was 52.4 last month, up from 51.8 in December. Output production increased due to growth in new orders, but exports fell for a seventh consecutive month.
“Over the past three months, the survey indicates that factories have typically produced more goods than they have sold to a degree we have not previously seen since the global financial crisis back in early 2009,” said S&P Global Market Intelligence chief business economist Chris Williamson.
“This highly unusual situation is clearly unsustainable, hinting at risks of a production slowdown and a potential knock-on effect on employment, unless demand improves markedly in the coming months.”
The Eurozone’s PMI was 49.5 in January, remaining below 50 for a third straight month. It increased from December’s nine-month low of 48.8, however.
Its output index lifted to a three-month high of 50.5. New orders fell for a third month, though this was a marginal decrease, according to the report.
South Korea and India’s PMI indices also increased in January.
