Global Manufacturing Activity Struggles in July 2023
S&P Global's manufacturing activity index reflects slow global growth in July 2023, with significant contraction in Europe and relative stability in the Americas.
Global manufacturing activity remained stagnant in July 2023, suggesting that the world economy is still grappling with slow growth and the impact of weakness in China. S&P Global's worldwide manufacturing activity index remained at 48.7, the lowest level since June 2020, while factory output and new orders also slipped to six-month lows.
In Europe, manufacturing activity contracted significantly, particularly in Germany, France, and Italy. The euro zone's manufacturing PMI fell to 42.7 in July, the lowest reading since May 2020.
In contrast, the Americas exhibited relative stability, with factory activity in the U.S., Canada, Brazil, and Mexico showing signs of resilience. In Mexico, manufacturing activity even expanded to a seven-year high.