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Global manufacturing growth slows but still strong

Published 06/01/2010, 11:30 AM
Updated 06/01/2010, 11:35 AM

LONDON, June 1 (Reuters) - Global manufacturing expanded at a slower pace last month than in April but still grew at its second-fastest rate during the past six years, a survey showed on Tuesday. The Global Manufacturing PMI, produced by JPMorgan with research and supply management organisations, fell to 57.2 in May from 57.8 in April, marking the 11th month above the 50 mark that divides contraction from growth.

"The latest PMI data suggest that the global manufacturing sector maintained both its solid growth momentum and broad base in May," said David Hensley at JPMorgan.

"However, rates of expansion in output and new orders eased from their April highs, suggesting that this initial recovery phase may have already passed its peak." The global output index fell to 59.5 from 60.9 in April while the new orders index dropped to 59.2 from April's six-year high of 60.3.

However, global manufacturing employment increased for the fifth successive month in May, with jobs added at the fastest pace in six years. JPMorgan said the sharpest growth in staffing levels was recorded in the United States.

Earlier data showed China's PMI fell last month, as did those in the euro zone, the U.S. and some other Asian nations. However, the UK managed to buck the trend with its index holding at April's 15-year high.

The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia. (Reporting by Jonathan Cable; editing by Stephen Nisbet)

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