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Global Economy Grows At Fastest Rate For Over 2 Years

Published 11/09/2017, 06:53
Updated 05/03/2021, 15:50
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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.

Global PMI records fastest growth for over two years

Global economic growth rose to its highest for over two years in August, according to PMI data. The headline JPMorgan (NYSE:JPM) Global PMI™, compiled by IHS Markit, rose from 53.6 in July to 53.9, its highest since April 2015. Historical comparisons suggest that the latest PMI indicates that global GDP (at market prices) is rising at a solid annual rate of just over 2.5%.

Global PMI* and economic growth

Sources: IHS Markit, JPMorgan.

Even more marked improvements were seen in order book and employment trends. Inflows of new business showed the largest rise for almost three years, and August saw one of the quickest increases in backlogs of uncompleted orders recorded over the past four years. Employment growth edged up to its best for over six years as companies’ expectations of future output levels also revived, with optimism approaching the recent high seen back in June.

* PMI shown above is a GDP weighted average of the survey output indices.

Global employment and new business

Sources: IHS Markit, JPMorgan.

Developed world sustains decade-high job creation

Global economic growth rose to its highest for over two years in August, according to PMI data. The headline JPMorgan Global PMI™, compiled by IHS Markit, rose from 53.6 in July to 53.9, its highest since April 2015. Historical comparisons suggest that the latest PMI indicates that global GDP (at market prices) is rising at a solid annual rate of just over 2.5%.

Even more marked improvements were seen in order book and employment trends. Inflows of new business showed the largest rise for almost three years, and August saw one of the quickest increases in backlogs of uncompleted orders recorded over the past four years. Employment growth edged up to its best for over six years as companies’ expectations of future output levels also revived, with optimism approaching the recent high seen back in June.

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In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are either registered trademarks of Markit Economics Limited or licensed to Markit Economics Limited. Markit is a registered trade mark of Markit Group Limited.

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