Global manufacturing activity shows widespread weakness, Fitch says

By Ovunc Kutlu

ISTANBUL (AA) - Global manufacturing activity shows widespread weakness, according to industrial production and business surveys, Fitch Ratings said Thursday in a statement.

"Industrial production has deteriorated in recent months in the US, eurozone and several other countries, including in Asia," the rating agency said in a statement. "Meanwhile manufacturing PMI surveys are showing readings below 50 – indicative of declining activity – in many countries."

For the purchasing managers' index (PMI), a reading above 50 indicates growth, while a reading below that level shows contraction in the manufacturing sector.

In the US, manufacturing PMI came in at 46.9% in May, 0.2 percentage points lower than the 47.1% recorded in April, according to a report released last Thursday by the Institute for Supply Management. This marked the seventh consecutive monthly contraction for the US' manufacturing sector.

In addition to the US, eurozone, the UK, Germany, France, Italy, Spain, Switzerland, Canada, Brazil, South Korea, Poland and South Africa all posted readings below 50 in May, according to Fitch.

"The slowdown in industrial production has been accompanied by a marked weakening in world trade as reflected in recent trends in imports in the US and Europe," the statement said.