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Global Growth Weakest in 2 Years

Global Growth Weakest in  2 Years Global Growth Weakest in  2 Years

Global economic growth edged lower in August, according to the latest purchasing managers index surveys, down to its second-weakest for nearly two years. The surveys also brought signs of an export-led slowdown spreading to other parts of the economy, including weaker growth of business investment and consumer spending, Investing.com reported. The headline JPMorgan Global Composite PMI, compiled by IHS Markit, fell from 53.7 in July to 53.4, its second-lowest since November 2016. On one hand, despite the fall, the latest reading is only marginally below the 53.8 average seen in 2017 and remains indicative of global GDP rising at a solid annual rate of 2.5% (at market exchange rates). Future expectations improved slightly, albeit still the second-lowest seen so far this year. On the other hand, manufacturing output growth continued to run at one of the weakest rates seen over the past two years, stymied by a further near-stagnation of global trade flows. Global export orders barely rose for a fourth consecutive month in August.

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