Oct 3, 2019 - Economy

Things may not be that bad for global manufacturing

Dion Rabouin

Illustration of a conveyor belt slowing down — Illustration: Rebecca Zisser/Axios

Tuesday's dramatic slide in U.S. manufacturing to the weakest level in 10 years generated jarring headlines and spooked the market, but there are signs the sector is improving on a global level.

Why it matters: Even in the U.S., things may not be as bad as the Institute for Supply Management's grim Tuesday report would suggest.

Between the lines: A survey of global manufacturing data from IHS Markit Tuesday showed that though the sector remains in contraction, the index rose for the second straight month.

Further, IHS Markit's U.S. manufacturing index showed "a marginally faster rate of improvement in the health of U.S manufacturing" and the highest reading in 5 months.
China, the world's No. 1 trading nation, looks to have recovered from weak readings earlier this year, which should help boost factory activity in the moribund eurozone and around the globe.
Emerging markets also have seen a solid reprieve with IHS' broad metric of EM manufacturing rising in September for a third consecutive month.

The last word: "The data provides no room for complacency, but is not quite as bleak as the ISM data suggests," Alan Ruskin, chief international strategist at Deutsche Bank, said in a note to clients.

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Things may not be that bad for global manufacturing

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