The following is an extract from IHS Markit’s monthly PMI overview presentation. The full report is below.
The JPMorgan Global PMI™ (compiled by IHS Markit) jumped by a record 11.4 index points in June, building on a prior record increase of just over 10 index points in May to push the index to a five-month high. Despite the rise, at 47.7, the PMI remained below the no-change 50.0 level to indicate a fifth successive monthly deterioration of output across the combined manufacturing and service sectors. However, historical comparisons indicate that a PMI reading of 46.7 is the cut off level between global GDP rising or falling on an annual basis, suggesting that the June surveys were indicative of a very modest return to growth for the global economy.
The rebound in the PMI from its unprecedented low in April has been driven by the loosening of COVID-19 containment measures around the world during both May and June, which has resulted in many non-essential businesses reopening and demand picking up again, albeit from a low base in most cases.
Source: Seeking Alpha