Growth in global output accelerated a bit in November, as seen from the JPMorgan Global Composite Purchasing Managers’ Index (PMI), which includes both manufacturing and services. The composite index improved despite global manufacturing remaining in contractionary territory, thanks to the resilience of the services sector. The bright spots were the US and Russia. China and the euro zone saw contractions in their economies. In India, the services sector saw a rebound.
Interestingly, the chart shows that after expanding strongly in the first quarter of 2011, the pace of expansion slowed considerably. However, it’s also noteworthy that there are still no signs of a contraction in the overall global economy. Despite the upturn in November, Joseph Lupton, Global Economist at JPMorgan, commenting on the PMI data, said, ”On balance, economic activity appears to be decelerating as the rebound from the commodity price surge and Japanese earthquake earlier in this year is now giving way to a euro area recession and a lingering inventory problem throughout Asia.”
Also See | Chart of the day (PDF)
PDF by Sandeep Bhatnagar/Mint