A global manufacturing survey indicates that this important production and trading industry continues to be in a mild slump as of August.

The JP Morgan Global PMI figures are based on the results of purchasing manager surveys carried out against countries accounting for about 76% of the world economy. 

As a result, the survey provides an accurate indication of how purchasing agents feel about business conditions around the world. The data provided below refers specifically to the manufacturing industries. 

A score above 50% is respectable since it implies expansion in manufacturing, while a score below 50% is bad since it suggests a contraction in manufacturing activity. Indeed, based on all of the subcomponents of the data gathered, global manufacturing has been in a slump over the past four months. 

As the global survey data indicate, new orders in manufacturing are contracting at the fastest rate in nearly seven years and international trade volumes have recently experienced their steepest reduction in seven years. Manufacturing employment has also declined for four consecutive months as of August. 

As well, in the US the Institute for Supply Management (ISM) reported that its index of national factory activity dropped to 51.7 in July, the lowest reading since October 2016, from 52.1 in May. It was the third straight monthly decline in the American index.

Manufacturing production accounts for about 12% of the US economy. Manufacturing also is a high value-added sector and of course tends to pay relatively high wages. Indeed, the industry is important for all countries.

Consequently, the weakening in manufacturing production and trade is very serious for the global economy, and for future job market prospects.

While manufacturers' worst fears about an all-out trade war with China wax and wane with every Donald Trump comment, nonetheless anxiety has recently calmed a bit because trade negotiations are once again on.

However, there is little doubt that concerns relating to the future structure of trade relations and the manufacturing part in all of this, will be around for some time.