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Manufacturing output rose for a second straight month in February, with a renewed rise in goods new orders driving the latest expansion in production.
A revival in consumer demand, an easing of the recent destocking trend and further inventory building were observed as key reasons for the improvement in manufacturing sector conditions. This was while the impact from the Red Sea disruptions remained limited upon supply chains in February, thereby enabling the growth in production to accelerate.
The J.P.Morgan Global purchasing managers’ index (PMI) composite output index, produced by S&P Global, rose to 52.1 in February, up from 51.8 in January.
The headline PMI continued to sit below the survey's long-run average of 53.2 and is consistent with an annualised quarterly global GDP growth of approximately 2 per cent, which remains well below the pre-pandemic ten-year average of 3 per cent.
The latest PMI reading signalled the fastest global expansion since June 2023, further helping to allay concerns of a global recession, S&P Global said in a release.
Fibre2Fashion News Desk (DS)