(J.P. Morgan: New York) -- The global manufacturing sector ended 2010 on a strong footing. Rates of growth in production and new orders accelerated, leading to a further solid increase in employment.

At a six-month high of 55.0 in December, the J.P. Morgan purchasing managers index (PMI) pointed to a robust improvement in overall operating conditions (figure 1). The PMI has remained above the 50.0 no-change mark throughout the past 18 months. The average reading for the PMI during the fourth quarter of 2010 was above that during the third quarter but below the six-year high reached during the second quarter. (PMI data for the United Kingdom were not available at the time of writing).

Figure 1: Global manufacturing purchasing managers index (PMI)

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