Global economy slumps at steepest rate since 2009 as COVID-19 virus hits
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.
Record fall pushes global PMI to lowest since May 2009
Worldwide growth plunged by a record extent in February, the pace of expansion slowing to the weakest since May 2009, according to the latest PMI surveys. The JPMorgan Global PMI™ (compiled by IHS Markit) fell by a record 6.1 points in February, down from 52.2 in January to 46.1. The latest reading is comparable with global GDP rising at an annual rate of just over 0.5% (at market prices), down from almost 3% back in January. Manufacturing output fell globally at the fastest rate since April 2009, while service sector activity slumped to a degree not seen since May 2009.
The deterioration was predominantly linked to the COVID-19 outbreak and led by a survey-record slump in activity across both manufacturing and services in China. Growth across the rest of the world meanwhile came close to stalling, registering the weakest expansion since September 2012.
Chris Williamson, Chief Business Economist, IHS
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