The Weekly Brief
Global Market Insights Strategy Team
Thought of the week
For much of this year, the global economy’s weak spot has been the manufacturing sector but in recent months this weakness appears to have broadened out to the services sector. However, the latest set of purchasing managers’ indices (PMIs) are showing signs that the manufacturing outlook may now be stabilising. The global manufacturing new orders PMI rose to 50 in October and the US manufacturing new orders PMI rose for the third consecutive month. There are some downside risks that remain though. The global services PMI continued to fall and the employment component of the surveys, across manufacturing and services, has weakened. The recent improvement in the manufacturing sector could provide a catalyst for a recovery but we will need to see an improvement in the services and employment surveys before being able to say with confidence that the global slowdown is over.
Global manufacturing sector is stabilising
Global PMIs, index level