The global economy is showing signs of recovery. Economic data around the world has broadly outperformed expectations so far.
While conditions remain challenging for many sectors worldwide – notably tourism and aviation – we see signs that the global manufacturing industry is slowly growing again. The global purchasing managers’ index (PMI) from IHS Markit for July, at 50.3, is at its highest level in six months. A reading above 50 indicates growth, and the higher the number, the faster the growth.
The services industry (sectors like finance, telecommunication, retail, transport, healthcare and other non-manufacturing activities) is also in recovery. The global services PMI increased from 48.0 in June to 50.5 in July, a 13-month high. After months of decline, this uptick indicates modest growth.
