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PMI surveys signal strengthened global growth in July

10 August 2020 Chris Williamson

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.

The worldwide PMI surveys indicated a strengthening of global economic growth in July, led by rebounding activity from coronavirus disease 2019 (COVID-19) lockdowns. The JPMorgan Global PMI™ (compiled by IHS Markit) rose for a third successive month in July, up from 47.8 in June to 50.8. The latest reading breached the no-change 50.0 level for the first time in six months to indicate expanding worldwide output across the combined manufacturing and service sectors.

The PMI had collapsed to an all-time low of 26.2 in April as governments around the world took increasingly drastic measures to contain the COVID-19 pandemic, including the widespread closures of non-essential businesses and restricting movement and travel. Since then the PMI has risen sharply as these containment measures have been eased, though the still-subdued level of the PMI reflects the fact that some measures remain in place, and recent weeks have even seen some restrictions re-imposed.

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Chris Williamson, Chief Business Economist, IHS Markit
Tel: +44 207 260 2329

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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