ECONOMICS COMMENTARY — Sep 08, 2022
Monthly PMI Bulletin: September 2022
By Lewis Cooper
The following is an extract from S&P Global Market Intelligence's latest Monthly PMI Bulletin. For the full report, please click on the 'Download Full Report' link.
August saw global economic activity contract for the first time since June 2020, as new order inflows declined, international trade volumes fell and signs of excess capacity grew. There was better news on the price front, however, with rates of input cost and output charge inflation both easing.
The J.P.Morgan Global Composite Output Index - produced by S&P Global - fell to 49.3 in August, from 50.8 in July. If lockdown months are excluded, the latest reading was the lowest since June 2009, during the global financial crisis. Output contracted in both the manufacturing and service sectors, the first time both categories have been in concurrent downturns since June 2020.
Although only modest, the downturn reflects an increasingly broad-based deterioration of output and demand conditions both by sector and region. Companies are also taking a more cautious approach to cost control and employment in the face of the worsening economic climate.
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Purchasing Managers' Index™ (PMI™) data are compiled by IHS Markit for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.