John Kemp 9/2:
CHINA’s manufacturers reported a worsening slowdown in business activity last month. The official purchasing managers index slipped to 49.1 (6th percentile for all months since 2011) in August from 49.4 (14th percentile) in July. The index has fallen in five of the last six months from a recent peak of 50.8 (64th percentile) in March. The weakness of business activity in the world’s largest manufacturing hub helps explain the softness in global consumption of middle distillates and petroleum:
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EUROZONE manufacturers also remained stuck in a prolonged slowdown last month. The purchasing managers index stayed at 45.8 (14th percentile for all months since 2006) for the third month running in August down from a recent high of 47.3 (24th percentile) in May. The region’s manufacturers are still struggling with the increase in gas and electricity costs since Russia’s renewed invasion of Ukraine in 2022 as well as soft demand after the end of the post-pandemic boom.