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.
Stalling exports drag global PMI to four-month low, optimism wanes
Global economic growth slowed to a four-month low in July, according to the latest PMI business surveys. At 53.7, compared to 54.2 in June, the headline JPMorgan (NYSE:JPM) Global Composite PMI, compiled by IHS Markit, remained indicative of global GDP rising at a solid annual rate of approximately 2.5% (at market exchange rates). However, a drop in future expectations to the lowest since November 2016 suggests the pace of expansion could wane further in coming months.
While both service sector and manufacturing growth rates weakened in July, the latter has exhibited the more significant slowdown, largely the result of a near-stagnation in global exports. Accelerating export trade flows had helped propel the global economic expansion in 2017 but, having peaked in January of this year, export growth has since all but disappeared. Only marginal export growth was seen in both June and July, the latter registering the smallest expansion for two years.
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