Global Economic Recovery Gains Momentum In June, But Job Market Casts Cloud On Outlook

Global Economic Recovery Gains Momentum In June, But Job Market Casts Cloud On Outlook

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

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