Global Economic Growth Softens to 5-Month Low

JPMorgan & Markit Global Indexes

Global manufacturing growth reached a 10-month high and global services growth plunged to a 6-month low, the net result being a 5-month low in overall global economic growth for April 2012. The USA, comprising 28.1% of the total, continues as the primary driver of world growth. The Eurozone is the primary drag on global growth, "France, Italy and Spain all reported steeper contractions in total activity, while Germany drifted closer to stagnation". Brazil, China, India, Japan, Russia and the UK reported expansion. The Global All-Industry Output Index has been greater than 50, indicating the global economy is expanding, since August 2009, for 33 consecutive months.

David Hensley, Director of Global Economics Coordination at JPMorgan, said, "Growth of global economic activity eased sharply to a five-month low in April. With new order inflows and job creation also slower at the start of Q2 2012, it looks as if the world economy is set for a softer growth patch heading into mid year. Cost inflationary pressures continued to abate, particularly at service providers".

JPMorgan Global All-Industry Output Index The April 2012 of 52.2 (-2.2) indicates expansion at a much  slower rate and below February's 12-month high (55.4). That was the highest since the Index peaked at 59.1 in February 2011, which was a post-recession high. The post-recession low was 51.3 in October 2011. Historical back data has been revised, only the latest 5 months of revisions are reflected on chart. The general trend is not affected by the revisions.



Global Services Growth Plunges to 6-Month Low

USA Services Sector Growth Drops to 4-Month Low

Global Manufacturing Growth Edges Up to 10-Month High

China Manufacturing Contracts Marginally, Slowdown Stabilizes

USA Manufacturing Growth Rises to 10-Month High

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