Global Manufacturing Pulse: US Surges, Canada Stalls, and China Sends Mixed Signals
- Protein Daddy
- Jun 3, 2024
- 1 min read
Manufacturing Purchasing Managers Index (PMI) | Previous | Actual |
US | 50 | 51.3 |
Canada | 49.4 | 49.3 |
China PR (CAIXIN) | 51.4 | 51.7 |
China PR (NBS) | 50.4 | 49.5 |
US Manufacturing PMI Hits 51.3 in May
The S&P Global US Manufacturing PMI has been revised to 51.3 for May 2024, up from a preliminary 50.9 and April's 50. This uptick marks the fourth improvement in five months, with new orders fueling production growth. Notably, demand from Europe, Asia, Canada, and Mexico is on the rise. However, input costs have spiked, prompting firms to hike prices.
Canada's Manufacturing Slump Continues
Meanwhile, the S&P Global Canada Manufacturing PMI dipped to 49.3 in May, down from 49.4 in April. This marks the 13th straight month of contraction, the longest on record since 2010. Canadian firms are grappling with weak market demand and ample stock levels, leading to reduced buying activity. On a brighter note, inflation pressures have eased, hinting at a stable pricing environment and a possible rate cut in June.
China's Conflicting Manufacturing Signals
China's manufacturing sector presents a mixed bag. The Caixin/S&P Global Manufacturing PMI climbed to 51.7 in May, its highest since June 2022, driven by smaller firms. This contrasts sharply with another official PMI, which indicated a surprising fall in activity. Despite infrastructure investments and high-tech manufacturing boosts, China's broader economic recovery remains uncertain.
Key Takeaways:
US Manufacturing: Steady growth with rising costs.
Canadian Manufacturing: Persistent contraction but easing inflation.
Chinese Manufacturing: Growth in small firms amid mixed broader signals.
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