Global Manufacturing Index Ends 2010 at 6-Month High Jan 6, 2011

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The global manufacturing sector, as measured by the JPMorgan Global Manufacturing PMI, reached 55.0 in December 2010, a six-month high. The PMI has now been above the 50.0 no- change mark for 18 months. The average PMI in the fourth quarter of 2010 was above the third quarter but below the six-year high reached in the second quarter.

The report noted that manufacturing production increased for the 19th consecutive month in December and at its fastest pace of expansion since June. The average rate of manufacturing production growth in 2010 as a whole was the quickest since 2004 and the second-sharpest since the series began in 1998. Output expanded in most reporting countries; only Japan and Greece reported contraction. Growth accelerated sharply in the US and the Eurozone and remained strong in China.

Growth of new orders picked up in December and the rate of increase hit a seven-month peak, but was still well below those generally seen at the start of the year. The report said incoming new work has now risen for 18 consecutive months.

International trade volumes improved in December and new export orders increased for the 18th successive month.

Global manufacturing employment rose for the 12th month in a row.

Average input prices rose at the second-fastest pace since April's 20-month peak.

Some of the increase in input costs reflected ongoing supply- chain pressures, highlighted by a further marked lengthening in average vendor lead times.

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