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Market Insights: Global Manufacturing Data

01/03/2014

The new year began with the release of global manufacturing activity reports for December. During the second half of 2013, an obvious resurgence in global manufacturing conditions supported higher growth expectations for many major global economies. I expect the late 2013 positive economic evidence is the initiation of a trend that will continue into 2014.

Some of this week’s reported manufacturing figures recorded moderation relative to prior months, however, none are to be interpreted as a reversal to the overall positive momentum of the prior few months.

Country

Dec. 2013

Nov. 2013

Oct. 2013

June 2013

2013 Avg.

USA

57.0

57.3

56.4

50.9

53.9

New Orders

64.2

63.6

60.6

51.9

57.2

Inventories

47.0

50.5

52.5

50.5

49.4

 

 

 

 

 

 

Mexico

50.3

50.4

49.2

46.5

50.3

 

 

 

 

 

 

China

51.0

51.4

51.4

50.1

50.8

Japan

55.2

55.1

54.2

52.3

51.8

 

 

 

 

 

 

Germany

54.3

52.7

51.7

48.6

50.6

U.K.

57.3

58.1

56.5

52.9

53.5

Italy

53.3

51.4

50.7

49.1

49.0

France

47.0

48.4

49.1

48.4

47.0

Eurozone

52.7

51.6

51.3

48.8

49.6

 

 

 

 

 

 

JPM Global

53.3

53.1

52.1

50.6

51.5

Source: Bloomberg

Other Notables

  • Canada’s December manufacturing moderated to 53.5 from November’s 55.3
  • Brazil’s December manufacturing rose to 50.5 from November’s 49.7
  • Turkey’s December manufacturing fell to 53.5 from November’s near three-year high of 55.0
  • India’s December manufacturing fell to 50.7 from November’s 51.3
  • South Korea’s December manufacturing rose to 50.8 from November’s 50.4, the third consecutive month above 50.0
  • Spain’s December manufacturing rose to 50.8 from November’s 48.6
  • Taiwan’s (highly correlated withthe U.S. and Chinese economy)December manufacturing rose to 55.2 from November’s 53.4, the highest reading since April 2011

U.S. ISM Manufacturing

Source: Bloomberg

China Manufacturing PMI

Source: Bloomberg

Germany Manufacturing PMI

Source: Bloomberg

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.