AI-Driven Factory Boom Ignores Oil Shock
Global manufacturing activity has seen its fastest pace in four and a half years, despite the oil shock that's pushed up production costs.
The S&P Global Manufacturing PMI rose to 53.0 in September, its highest level since February 2022, with production recording its strongest increase since July 2021.
New orders and global trade also picked up, but factory selling prices are rising at one of their fastest rates in more than three years due to higher oil prices feeding into transport and energy costs.
The manufacturing boom is being driven by demand for AI infrastructure and defence equipment, with Taiwan's PMI climbing to 56.7 and South Korea seeing a sharp increase in factory activity.
The eurozone manufacturing PMI rose to 52.9 in September, its highest level since May 2022, but the strength was concentrated in capital goods, including AI and defence equipment.