November PMI Note
In November, manufacturing new orders in Asia and the Americas extended their contractions at 44.6 and 45.2 respectively. In Europe new orders improved slightly in October, up from 40 to 42.
Price pressures continued to ease from very high levels in the Americas and Europe at 59.7 and 63.6 respectively. Asia remained at more normal levels of 51.7 in November.
The Services sector has been contracting at a slower rate than manufacturing for the last 3 months with the weighted G5 Services index posting 47.8 in November. Typically service sector new business doesn't fall below 50 in a mid-cycle slow down.
New orders in the G10 as a whole ticked down further to a cycle low of 44.2. In previous mid-cycle slow downs that didn't turn into recessions, G10 New Orders have bottomed in the 45-47 range.