First signs of improvement for global manufacturing

​January 2012’s manufacturing PMIs are worth noting...

By Maxime Lemerle, head of Macroeconomics Analysis


First, the global weighted average monthly measure showed a second consecutive rebound to a 7 month high, albeit an anemic level only slightly above the 50-mark (the limit between expansion and contraction of the economy).


Second, the outstanding divergences continue but narrows between the US (ISM up 1 point to 54.1) and the Eurozone (up 1.8 point to 48.8).


Third, the divergences persist within the Eurozone, leaded by Germany (+2.6 points to 51) and Austria (51.8), but with several countries lagging despite a monthly rebound (Italy, Spain, Netherlands) or after another fall (France, Ireland, Greece).


Fourth, the non-euro European periphery demonstrated significant bounces (UK, Sweden, Norway, Poland) and only few exception (Switzerland). The same for the other so called developed countries (Canada, Australia, Japan). Finally, the emerging countries generally did better, with a hardly obvious gain in China, but positive levels of PMIs in Brazil (50.6, up from 49.1), in India (57.5, up from 54.2) and in Russia (50.8 down from 51.6).