53139
While emerging markets generally reported improved economic growth in October, Brazil remained the Achilles Heel, with the economy contracting once again.
While emerging markets generally reported improved economic growth in October, Brazil remained the Achilles Heel, with the economy contracting once again.

Global PMI Recovers in Oct.

The upturn was spread across developed world where growth of business activity climbed to an 11-month peak and the emerging markets saw growth hit a 20-month high

Global PMI Recovers in Oct.

Global economic growth kicked higher at the start of the fourth quarter, according to PMI survey data, though inflationary pressures also intensified.
The JPMorgan Global PMI Composite Output Index, compiled by Markit from its various national surveys, rose from 51.7 in September to an 11-month high of 53.3 in October. The improvement points to annual global GDP growth (at market prices) accelerating above 2% at the start of the fourth quarter and pulling out of the malaise that had been evident through the second and third quarters, SeekingAlpha reported.
Manufacturing grew at the sharpest rate for just over two years and services saw the largest monthly increase in business activity since November of last year, suggesting a broad-based improvement in the global economy.
The upturn was also spread across developed and emerging markets. Though led by the former, where growth of business activity climbed to an 11-month peak, the emerging markets saw growth hit a 20-month high.

  Restrained Hiring
The global upturn was driven by inflows of new business rising at the fastest rate for nearly a year, but the improvement in demand fed through to only a modest gain in employment as companies in many countries remained concerned about the economic outlook, linked in many cases to political uncertainty, especially in the US and Europe.
Employment growth nevertheless moved in the right direction. Net worldwide job creation hit a three-month high, fuelled by increased hiring in the developed world and the slowest rate of job losses for nearly a year in the emerging markets.

  Price Pressures
Faster economic growth has also been accompanied by inflationary pressures. Companies’ input costs increased at the fastest rate for 28 months in October, primarily reflecting rising global commodity prices (notably oil). Average prices charged for goods and services globally also rose at the steepest rate for just over two years as costs were often passed on to customers.
Although the overall rates of inflation remained relatively muted on average at the global level, national variations were marked, with the UK seeing especially steep rises as the weakened pound pushed the cost of imports higher.
  Developed & Emerging Markets
Growth of developed world business activity was pushed to the highest for almost a year by a broad-based improvement in all the major rich-world economies. US growth accelerated especially sharply to the highest since last November. The UK saw a similar robust rate of expansion that was the strongest since January.
Eurozone growth also ticked higher, though failed to meet the stronger expansions seen in the US and UK. Japan continued to trail behind but saw growth revive to register the largest monthly upturn since January.
While failing to accelerate to the same extent as the developed world, emerging markets generally reported improved economic growth in October. Most striking was an acceleration of growth in China, Russia and India to the fastest for just over three and a half years.
Brazil remained the Achilles Heel, with the economy contracting once again, as shown by the PMI dipping further into negative territory at the start of the fourth quarter.
Meanwhile, speakers at the annual assembly of the Latin American Banking Federation in Buenos Aires said that Brazil needs to open its economy if it is to achieve long-term growth.
Economists from Banco Bradesco and Banco Safra shared a positive outlook for Brazil’s return to modest GDP growth in 2017 (around 1%) and 2018 (around 2.5%), as the country embarks on an ambitious reform journey.
Otavio de Barros, Bradesco’s chief economist, listed Brazil’s “original sins”, which include a lack of budgetary governance, acceptance of medium to high inflation (currently around 6%), and being one of the most closed large economies in the world.
“In the last five decades we have built a very potent economy and now it’s time more than ever to open the economy, gradually and by investing in bilateral and regional agreements. This is crucial to productivity,” said de Barros.

Short URL : https://goo.gl/Tgn13d
  1. https://goo.gl/qeNrCy
  • https://goo.gl/tYPlDl
  • https://goo.gl/SavzO4
  • https://goo.gl/06UUeg
  • https://goo.gl/EwSFWC

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...
World Shares Snap Five-Day Losing Streak
World stocks steadied near three-week lows on Wednesday and...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
South Korea to Grow 3 Percent
The Organization for Economic Cooperation and Development has...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus