Coronavirus Watch: Industry’s strength to endure

November’s global composite PMI data suggest that any fears that renewed lockdowns and activity restrictions due to the recent surge in Covid-19 cases would push the global economy back into recession look wide of the mark. Although the composite PMI fell, the drop from 53.3. to 53.1 was modest and left the index well above the 50 no change mark, and on past form is consistent with pretty solid GDP growth.

What you will learn:

  • Heading into 2021, services look set to be the biggest beneficiaries of the rollout of vaccine programs. Even so we expect industry to continue to fare well.
  • Orders have outperformed actual production this year, resulting in a decline in inventories. Even if orders growth tails off, stocks are likely to be replenished in the shorter term, supporting production growth.
  • The eventual vaccine-related re-opening of services will also boost demand for industrial goods used as inputs by service sector firms. Demand will also be boosted by the accompanying increase in services employment.

Topics: Manufacturing, Global, Coronavirus, Industry, Macro, Coronavirus vaccine

Coronavirus Watch Industrys strength to endure - iPad