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
	Apr	May	Jun	Jul	Aug
Output	57.7	57.0	55.4	54.6	53.9
New orders	56.9	55.3	53.3	53.5	52.3
Input prices	60.9	59.2	54.5	53.3	56.8
Employment	50.8	51.4	50.8	51.4	50.5

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.