Thread by @WilliamsonChris

Global #manufacturing PMI falls into contraction territory for first time since 2020 lockdowns.

Here's our deep dive into the numbers and sub-indices bit.ly/3RzsmPs

Of the 31 economies for which S&P Global PMI data are available for September, some 21 reported falling production. Myanmar and Taiwan are seeing the steepest downturns, followed by the Czech Republic and Poland.

Evidence of any substantial growth in production was largely confined to APAC, led by advances in Thailand, India, Indonesia and Vietnam.

COVID-19 containment continued to contribute to further manufacturing weakness in mainland China, in turn acting as major drag on global growth. But US producers reported a marginal return to growth, driven in part by moderating supply delays & signs of weaker price pressures

The deteriorating manufacturing picture was driven by a slump in global #trade. The global PMI's new export orders index signalled the fastest decline since the initial pandemic lockdowns of early-2020 and, prior to that, the global financial crisis.

Demand destruction: September saw a sharp rise in the number of manufacturers worldwide reporting that orders had fallen directly as a result of higher prices. The incidence of such price-driven order book losses is running at the highest since the series began in Jan 2005.

The number of manufacturers worldwide reporting that input buying has risen due to the need to build safety stocks of items in short supply has fallen sharply, down from a peak of over 12x the long-run average in late-2021 to just over 2x the long run average in September.