PMI

What will the New Year bring? Purchasing Managers Indices (PMIs) are a good leading indicator of present and near-term manufacturing activity by country.

The global electronics industry normally experiences a seasonal upturn from mid-summer through the December holidays. However, this autumn’s upturn is less robust.

Electronic equipment growth definitely slowed in late 2018. Based on the consolidated revenues of 213 large, global OEMs electronic equipment sales grew only 2.1 percent in 4Q’18 vs. 4Q’17, down from 4.9 percent in the third quarter and 10 percent in the second quarter.

World manufacturing growth has slowed but its growth rate varies significantly by region. Recently China and Europe have registered slower growth but U.S. growth is expanding. How long U.S. manufacturing will continue to accelerate remains to be seen. Geopolitical issues abound.