Global Economic Growth Remains Subdued

JPMorgan & Markit Global Indexes

Global All-Industry Output Index by Month



The global economy started Q4 2012 on a lacklustre footing. Rates of expansion in output and new orders remained well below their long-run trends, as growth at service providers was offset by the ongoing contraction at manufacturers.

The Global All-Industry Output Index – produced by JPMorgan and Markit in association with ISM and IFPSM – posted 51.3 in October, down from 52.4 in September. The headline index has signalled expansion for 39 successive months. However, following a brief spell of solid growth during the opening quarter of the year, the rate of expansion since then has remained weak overall.

David Hensley, Director of Global Economics Coordination at JPMorgan, said: "The start of the final quarter has seen global economic growtt continue to track at a below long run trend pace. A contracting manufacturing sector remains the main drag, while the larger service sector remains on a subdued expansion path. The trend in employment has also been volatile in recent months, as companies continue to assess future growth prospects."

Global Manufacturing PMI by Month



Global Services PMI by Month