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Flash PMIs Flag Factory Weakness as Services Keep Growth Afloat

Pre‑Budget caution in Britain, weak trade flows, swelling stockpiles and easing inflation help explain the latest readings.

View of the financial district in London, Britain July 3, 2022. REUTERS/Yann Tessier
A commuter train passes by the skyline with its financial district in Frankfurt, Germany, October 25, 2021. REUTERS/Kai Pfaffenbach
A general view shows the Montparnasse Tower and the Eiffel Tower with the financial and business district of La Defense in the background, in Paris, France, August 22, 2025. REUTERS/Abdul Saboor
A worker walks near a factory at the Keihin industrial zone in Kawasaki, Japan, March 8, 2017. REUTERS/Toru Hanai

Overview

  • United Kingdom: the flash composite PMI dropped to 50.5 from 52.2 as firms paused decisions before Rachel Reeves’ Nov 26 Budget, services cooled, manufacturing edged up to 50.2, and a separate CBI survey showed the sharpest three‑month output fall since August 2020 with an output balance of -30.
  • Euro zone: the composite PMI held at 52.4 with services at 53.1, while manufacturing slipped back into contraction at 49.7; Germany’s composite eased to 52.1 with factory PMI down to 48.4 and export orders falling at the quickest pace since January.
  • United States: the flash manufacturing PMI eased to 51.9 as new orders slowed and finished‑goods inventories hit a record high, even as the composite index rose to 54.8 on resilient services activity at 55.0.
  • India: the HSBC/S&P Global flash composite PMI eased to a six‑month low of 59.9, with manufacturing down to 57.4 and services up to 59.5; firms reported softer new orders and the weakest input cost inflation in over five years.
  • Japan: the flash manufacturing PMI remained in contraction at 48.8 for a fifth month, services stayed resilient at 53.1, and the composite rose to 52.0 with inflation pressures persisting for businesses.