Global Business Growth Eased in May but Employment Picked Up
London. Global business growth stuttered in May but firms recruited staff at the fastest rate for over seven years, suggesting they were optimistic about the future, a survey showed.
JPMorgan’s Global All-Industry Output Index, produced with Markit, fell to 53.6 in May from April’s 54.2. It has been above the 50 mark that divides growth from contraction since October 2012.
“Although the May PMI suggests that the rate of global economic expansion has slowed further, the implied growth rate remains slightly above the economy’s potential and well above what was achieved in Q1 [first quarter],” said David Hensley, a director at JPMorgan.
“With job creation the highest since late-2007 and new order inflows still solid, there remains scope for GDP to accelerate heading into the third quarter.”
An employment sub-index rose to 52.9, its highest reading since December 2007. The new orders index dipped to 53.6 but has been above 50 since October 2012.
A global PMI covering the service industry fell to 54.1 in May from 54.8 while a sister survey on Monday showed manufacturing growth accelerated slightly last month but remained weak.
The PMI combines survey data from around 20 countries including the United States, Japan, Germany, France, Britain, China and Russia.
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Source: The Jakarta Globe