We can not ignore the decline in world manufacturing PMI

On the graph, we see a startling fact: production in the main regions of the world and the global PMI declines rapidly at each subsequent month. Surprisingly, at the peak of the economic cycle, the Eurozone was the best and most tantamount to the lowest PMI, significantly below the ballast line 50. The Chinese economy also reported a negative trend, and the trade war, which also applies to the United States. However, US production is still high, but is approaching the critical line of 50. However, given the trend currently underway, expectations are that the decline in industrial activity and PMI will continue, with the US PMI falling below 50, the rest as well as the world will continue to decline. This is also due to the late economic cycle from which the world comes out, which is entirely natural to the economy.

These are PMIs by country, with the impression that developing countries such as Brazil, Myanmar, Turkey still report positive PMIs, and developed economies lead in the negative trend.

Graphs: Used with permission of Bloomberg Finance L.P.

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