Global growth slips closer to decade lows as manufacturing weakness spreads to services
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.
Latest worldwide PMI data showed the global economy losing further growth momentum in October. At 50.8, the JPMorgan Global PMI™ (compiled by IHS Markit) fell to its lowest since February 2016, registering one of the weakest monthly expansions since the global financial crisis. The PMI is comparable with global GDP rising at an annual rate of 1.75% (market prices) at the start of the fourth quarter.
Although manufacturing showed further tentative signs of improving, having led the global slowdown throughout the past year and a half via deteriorating worldwide exports, recent months have seen increasing signs of slower service sector growth. Global service sector output rose in October at its slowest rate since early-2016.
Recent Global PMI overview presentations:
- Oct 2019: Global growth at three-year low as weakness spills over to services
- Sep 2019: Global growth close to three-year lows amid worsening trade picture
- Aug 2019: Global economy lifted by services but hit by steepening decline in manufacturing
- Jul 2019: PMI surveys indicate global economic growth stuck at three-year low
Chris Williamson, Chief Business Economist, IHS Markit
Tel: +44 207 260 2329
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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.
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