Thursday, 5 December 2013

US economy drives global output up

Economic data on Wednesday were mostly positive.

JPMorgan's global all-industry output index rose to 54.3 in November from 52.1 in October. According to JPMorgan, the US was the brightest spot in the global economy.

Indeed, the Federal Reserve reported in its Beige Book that the economy grew at a “modest to moderate pace” in October and early November and US economic data on Wednesday were mostly positive.

While the Institute for Supply Management's non-manufacturing index fell to 53.9 in November from 55.4 in October, ADP reported that private employers added 215,000 new jobs last month. New home sales jumped 25.4 percent in October after falling 6.6 percent in September and the trade deficit shrank in October after exports hit an all-time high.

In the euro area, third quarter growth was confirmed at 0.1 percent, which was down from 0.3 percent in the previous quarter.

The fourth quarter may also have started weakly as another report showed that eurozone retail sales fell 0.2 percent in October. Also, Markit's eurozone composite PMI fell to 51.7 in November from 51.9 in October as the services index fell to 51.2 from 51.6.

The UK services sector also slowed in November. However, at 60.0, it remained near its 16-year high of 62.5 in October.

China's services sector growth also maintained momentum in November. The HSBC/Markit services PMI fell slightly to 52.5 from 52.6 in October.

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