As the global economy recovers slowly, manufacturing expansion is seen everywhere in North America, Europe, and Asia. Korea's manufacturing sector is also showing signs of rebound. In some economies including eurozone and China, there are even talks of reining in inflationary pressure.
According to Global Manufacturing PMI produced jointly by JP Morgan and IHS Markit, the April index figure was 52.8, surpassing the 50 level for 14 consecutive months. A Manufacturing PMI of over 50 implies economic expansion while the index below 50 means contraction.
David Hensley, director of global economic coordination at JP Morgan, said, "April's Global Manufacturing PMI reflects confidence of companies on future economic conditions." JP Morgan interpreted that the index remained at a high level due to a higher amount of trade instead of domestic orders.
By region, the month's manufacturing PMI for eurozone was 56.7, the highest level in six years. Most major European economies including Germany (58.2), France (55.1), and Italy (56.2) saw their PMI figures exceed the 50 threshold. In North America, the PMI for the United States was 54.8, slightly lower than March's 57.2 but still well over 50. As for Canada, the figure was 55.9, the highest level since April 2011.
Asia's manufacturing sector is also showing signs of expansion. China's PMI for April was 51.2, over 50 for the ninth month in a row. Japan saw its manufacturing PMI rise over 50 for eight straight months to 52.7 while Taiwan was for 11 consecutive months to 54.4. In the case of Korea, the figure has been below the 50 level for eight months in a row since August last year, but is slowing rebounding. April's figure was 49.4, up 1.0 point from the previous month's 48.4.