The most recent round of global PMI data shows continued steady expansion of the global economy. The manufacturing composite rose to 52.2 and the services composite jumped to 54.6, both of which indicate a slightly faster pace of expansion. The services composite is at its highest level since August of last year.
Among the countries tracked here, there hasn’t been a significant change in trend over the last year or so. The US and UK continue to be the strongest economies, while economies sensitive to emerging markets, like Australia and Brazil, lag.
Interestingly, even though the global composite index increased, more countries were in contraction in May than in April. France and South Korea’s manufacturing surveys both fell below 50. Nine of the 24 surveys tracked here are now in contraction.
On a country specific basis, it’s worth noting that Japan’s surveys both continued to indicate contraction, but at a much slower pace than in April when the country’s sales tax was increased. Also, the eurozone manufacturing survey continues to be solidly above 50, which doesn’t seem to confirm the need for negative interest rates. Meanwhile, India’s services survey rose above 50 for the first time in 11 months.
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