Markit economic overview

The following is an extract from Markit's monthly economic overview. For the full report please click the link at the bottom of the article.

Developed world leads global economic growth to six-month high

Global economic growth accelerated for a third month running in March, reaching a six-month high according to the JPMorgan Global PMI", compiled by Markit. The latest reading is broadly consistent with worldwide GDP expanding at an annual rate of 2.5%, up from 2.0% at the end of last year. However, the emerging markets underperformed relative to the developed world to one of the greatest extents seen in recent years.

Global PMI and economic growth

Developed v. emerging markets

US, UK and Eurozone lead global economic upturn

Developed world growth hit a seven-month high led by welcome signs of faster expansions in the US, Eurozone and the UK. But Japan slipped back into contraction. The emerging markets also remained in the doldrums, collectively seeing a weaker expansion than in February, led by steep downturns in Russia and Brazil. India and China saw growth rates remain modest.

Developed world

Emerging markets

US economy shows signs of reviving after soft patch

Having signalled a marked easing in the pace of US economic growth around the turn of the year, Markit'sUS PMI surveys are indicating that the pace of expansion and hiring will pick up again in the second quarter. The slowdown has led markets to not price in the first rate rise until December (according the Fed Funds rate futures), but any upturn in coming months will increase the chance of a September rate hike.

US economic growth (GDP v PMI)

US manufacturing output

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