The recovery of the global manufacturing sector gathered pace in August, with output and new orders rising at the fastest rates since April 2018 and June 2018 respectively. The upturn was mainly driven by the restarting of production and reopening of clients following lockdowns in response to the coronavirus disease 2019 (COVID-19) outbreak.
The J.P. Morgan Global Manufacturing PMI rose to a 21-month high of 51.8 in August, from 50.6 in July and above the neutral 50.0 mark for the second successive month. Of the 31 territories covered by the survey, 19 recorded PMI readings indicative of growth.
August saw manufacturing output increase for the second month running, following a five-month sequence of decline. Production rose across the three sub-sectors covered by the survey. Growth accelerated to a 16-month high at consumer goods producers and to 30- and 23-month peaks in the intermediate and investment goods categories respectively.