Global economy enjoys best quarter for three years, inflationary pressures hit 6'-year high
The following is an extract from IHS Markit's monthly PMI overview presentation. For the full report please click on the link at the bottom of the article.
Global economic growth continued to run at a solid pace in September, according to PMI data. The headline JPMorgan PMI, compiled by IHS Markit, was unchanged from August at 54.0. The robust performance rounded off the best quarter since Q3 2014. Historical comparisons suggest that the latest PMI indicates that global GDP (at market prices) is rising at a solid annual rate of around 2.5%.
Unlike many previous spells of stronger economic expansion, global growth is also well-balanced, with similar rates of expansion seen in manufacturing and services in recent months. While manufacturing and trade lagged behind robust services expansions in 2014 and 2015, rising goods trade has accompanied a broader services upturn over the past year, the latter indicative of rising domestic demand in key developed markets such as the eurozone, Japan and the US.
Global PMI* & economic growth
Sources: IHS Markit, JPMorgan
Chris Williamson | Chief Business Economist, IHS Markit
Tel: +44 20 7260 2329
chris.williamson@ihsmarkit.com