Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Global economic growth accelerated in February, according to the
worldwide PMI surveys conducted by IHS Markit, with growth falling
just short of last October's peak to signal the second-strongest
expansion since August 2018. The upturn was led by the
manufacturing economy, as further efforts to contain the
coronavirus disease 2019 (COVID-19) pandemic continued to limit
service sector growth, notably for consumer services.
At 53.2, up from 52.3 in January, the JPMorgan Global PMI™
(compiled by IHS Markit) indicated rising output for the eighth
straight month as demand continued to revive from the initial
impact of COVID-19 lockdowns.
Whereas growth had slowed in the three months to January,
primarily reflecting the re-introduction of measures to control
further outbreaks of the virus in many countries, February saw
restrictions ease on average. IHS Markit's Global COVID-19
Containment Index fell from 48 in January (which had been its
highest since last May) to 45 in February.
Consumer services hardest hit but financial services
boom
Manufacturing continued to lead the upturn, albeit with the rate
of expansion remaining below the peak seen at the end of last year
due in part to supply shortages, though still notching up one of
the best performances seen over the past decade.
Leading the production upturn was a surge in output of
investment goods, such as machinery and equipment, with the rate of
increase the second-quickest over the past ten years, pipped only
by last November's increase.
The weakest area of manufacturing remained consumer goods,
reflecting ongoing retail closures and social distancing measures
in many countries, although even here sustained and moderate growth
was recorded.
Growth of business activity in the service sector meanwhile
lagged behind that of manufacturing again, principally due to an
ongoing marked fall in cross-border trade in services (whereas
exports of goods continued to rise). Service sector exports
continued to be hit by COVID-19 restrictions on travel and tourism
in particular.
Consumer services hence suffered by far the worst performance of
all the broad sectors in February, with business activity
deteriorating at the sharpest rate since last May. In contrast,
output of business services and financial services accelerated, the
latter notably quickening to the fastest recorded since comparable
data were first available in 2009 as growth in recent months has
surpassed the prior peak seen in 2012.
Chris Williamson, Chief Business Economist, IHS
Markit
Purchasing Managers' Index™ (PMI™) data are compiled by IHS Markit for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
