Manufacturing PMI is bouncing back globally with economies reopening; however, recovery is uneven amongst developed and developing nations
Upshot:
- In April 2020, most countries had the sharpest fall in their manufacturing PMI with the onset of strict lockdowns across the globe due to the pandemic
- However, in just 11 months global economic growth accelerated to above pre-pandemic levels, as economies continued to reopen after COVID-19 related restrictions
- Recent months’ PMI data have highlighted that more vaccinated regions like the US, UK and Eurozone experienced stronger growth while some other countries continue to struggle with the pandemic, notably Japan, India and Vietnam
- While both production and new orders are now rising at some of the fastest rates ever as demand has surged following the reopening of economies from COVID-19, it is being accompanied by unprecedented price rises, in turn fuelled in many cases by record supply chain delays
- As developing markets continue to contain the pandemic within their borders, with vaccination programs and safety measures further implemented in factories, output in the manufacturing sector is expected to further increase
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