Monday, 6 September 2010

Global PMI shows slowing economy

The global economy is slowing, according to purchasing managers.

The following table shows the JPMorgan global composite indices since the output index hit a peak in April.

JPMorgan Global All-Industry Indices
New orders56.955.353.353.552.3
Input prices60.959.254.553.356.8

All the indices are still above 50 though. In the latest global PMI report, JPMorgan director of Global Economics Coordination David Hensley said:

August PMI data pointed to a further downshift in the rate of recovery of the global economy. Growth of global GDP is likely to slow to around 2.5% in the third quarter, down from a peak of almost 4% in the second quarter. However, what we are seeing is more in line with a moderation than a sharp slowdown, suggesting that there is still sufficient momentum heading forward to maintain the recovery.

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