Global Manufacturing Slump May Have Bottomed Out
January 24, 2020
Manufacturing around the globe had a hard 2019, as the ongoing trade tensions between the U.S. and China exacerbated a broad global slowdown. New data shows that the worst may have passed and that 2020 may see a moderate rebound for global manufacturing.
IHS Markit’s purchasing managers indexes for Japan, Europe and the U.K. continued to show contraction in January, but at a slower pace. This is a promising sign for the sector, and IHS Markit economists say that the reading indicates that the worst of the slowdown looks to have passed and that manufacturing appears to be stabilizing.
The U.K saw output grow at the fastest rate in 16 months, boosted by a clearer path to Brexit. One troubling sign was that the eurozone saw its improved manufacturing offset by weakening in the service sector, suggesting the region may struggle to find economic momentum in the new year.