The global manufacturing sector made an encouraging start to 2013, showing further signs of recovery following the soft patch seen through the middle of last year.
At 51.5 in January, the JPMorgan Global Manufacturing PMI – a composite index produced by JPMorgan and Markit in association with ISM and IFPSM – rose to a ten month high and has posted back-to-back readings above the 50.0 expansion mark around the turn of the year.
Global manufacturing production rose for the third straight month and at the fastest pace since March last year. Growth was led by the U.S., were the rate of expansion hit a ten month peak, and Mexico. The trend in China manufacturing output also strengthened to its highest for almost two years.
Global manufacturing new orders rose for the first time in nine months in January. However, a further decline in backlogs of work suggested that the increase in new orders was insufficient to fully replace completed contracts.