Global Factory Activity Advances as Output Growth Quickens
In April, growth in global manufacturing activity strengthened from March, increasing from 51.3 to 52.6. Output and new orders both grew as the rate of manufacturing production growth hit a nearly five-year high. Meanwhile, lead times continued to slow, lengthening to the greatest extent since August 2022. Employment declined slightly for the second consecutive month, and inventory levels rose as firms prepared for anticipated supply chain disruptions and further cost increases.
Taiwan, Japan, Ireland and India had the highest PMI readings in April. On the other hand, Mexico, Russia and Turkey were some of the larger nations to register declines in activity. The accelerating growth in manufacturing production occurred across consumer, intermediate and investment goods.
Meanwhile, input and output price pressures continued to surge as output prices rose at the sharpest rate since June 2022. At the same time, business optimism remained depressed amid rising cost pressures and supply chain disruptions. Geopolitical uncertainty continued to weigh on sentiment as input costs rose at one of the fastest rates in the 28-year survey history.