US Flash Composite Output Index falls to lowest in just over one-and-a-half years, falling to 53.6 in December from… https://t.co/kACP2MWX6g
Global economy suffers loss of momentum in March
Global economic growth slowed sharply to the weakest for over a year in March. The JPMorgan Global PMI™, compiled by IHS Markit, fell for the first time in six months, down sharply from 54.8 in February to a 16-month low of 53.3. The 1.5 index point drop was the steepest seen for two years. To put the decline in context, while the February PMI reading was consistent with global GDP rising at an annual rate of 3.0% (at market exchange rates), the March reading is indicative of 2.5% growth.
Inflows of new business and backlogs of work also rose to weaker extents than seen in the previous month. Employment growth remained more resilient, easing only marginally from the decade-high rates seen in prior months to suggest that firms continued to focus on expanding capacity to meet rising demand. Future expectations also remained elevated, suggesting that at least some of the slowdown may prove temporary. Bad weather was cited in many countries as curbing business activity in March.
Global PMI* output & economic growth
Global PMI indicators*
- IHS Markit US PMI signals GDP growth rate slowing close to 2.0% in December
- Week Ahead APAC Economic Preview: Week of 17 December 2018
- Global growth outlook blighted by weak trade flows
- Buoyant Brazil PMI data build on strong third quarter GDP figures
- Widespread disruption in autos sector hits Czech economy
- UK GDP data add to signs of economy's renewed weakness after strong summer
- Week Ahead APAC Economic Preview: Week of 10 December 2018
- PMI suggests Italy to enter technical recession in fourth quarter