Global Economic Growth Softens: Manufacturing Flat, Services Drop

JPMorgan & Markit Global Indexes


Global Economy Manufacturing growth was flat and services sector growth dropped in March 2012, but global economic growth continues. The U.S. continues as the primary driver of world growth, weighted with a 28.1% share of global GDP. In fact, "The expansion is, however, still heavily dependent on the strong performance of the US economy." The Global All-Industry Output Index has been greater than 50, indicating the global economy is expanding, since August 2009, for 32 consecutive months. An index reading greater than 50 indicates expansion.

JPMorgan Global All-Industry Output Index The current reading of 54.6 (-0.8) indicates expansion at a slower rate and below February's 12-month high. 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 4 months of revisions are reflected on chart. The general trend is not affected by the revisions.




JPMorgan Global Manufacturing PMI The current reading of 51.1 (-0.1) indicates expansion at a slightly slower rate. The PMI recent peak was 57.4 in February 2011. The post-recession high has been 57.7 in April 2010. The post-recession low was 49.7 in November 2011. Historical back data has been revised, only the latest 4 months of revisions are reflected on chart. The general trend is not affected by the revisions.




JPMorgan Global Services PMI The current reading of 55.2 (-1.1) indicates expansion at a slower rate. The Index peaked at 59.2 in February 2011, which was a post-recession high. The post-recession low was 50.3 in November 2009. Historical back data has been revised, only the latest 4 months of revisions are reflected on chart. The general trend is not affected by the revisions.