3 ETFs To Play Upbeat Global Manufacturing

The end of Q3 showed an improving trend in manufacturing activity globally. Readings in several big economies’ manufacturing activities came in favorable in recent times giving cues of strength in global superpowers, which should catapult in Q4.

This area had long been an issue given global growth worries translating into softer demand. However, the weakness is dispersing now. Let’s take a look at the data points. Most of the PMI readings came in higher than 50, which points to an expansion in activity.

US Manufacturing at 13-Year High

U.S. factory activity jumped to a more than 13-year high in September thanks to higher new orders. The Institute for Supply Management’s Manufacturing PMI in the United States increased to 60.8 in September 2017 from 58.8 in August, trumping market expectations of 58. Out of the 18 manufacturing industries, as many as 17 registered expansion last month.

Chinese Manufacturing at 5-Year High

Factory activity in China grew at its quickest clip since April 2012 in September, aiding the world's second-largest economy. China’s official PMI came in at 52.4last month, up from August’s 51.7. The figure also represented the 14th successive month of expansion for China's manufacturing industry.

Euro Zone Activity at 6-Year High

Manufacturing output rose at the quickest pace since April 2011 in the Eurozone. Sturdy growth in the order book led factories to employ additional workers at a record rate. Manufacturing PMI rose to 58.10 in September from 57.40 in August of 2017.

UK Manufacturing PMI in Growth Zone; But Falling

The Markit/Cips UK manufacturing PMI index indicated that activity dropped to 55.9 last month from 56.7 in August, as commodity prices hurt firms. However, even after a disappointing figure, the reading was still in the growth zone.

Japan Manufacturing Sentiment Upbeat

Manufacturing PMI in Japan increased to 52.90 in September from 52.20 in August 2017. Big companies plan to raise capital expenditure by 7.7% in the current fiscal year ending in March 2018, almost same as their expectations in June. Big manufacturers' sentiment was plus 22 in September, surpassing a median market forecast of plus 18 and the previous June survey of plus 17. The figure also represents the highest level since September 2007.

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