Global Services Growth Plunges to 6-Month Low

JPMorgan & Markit Global Indexes

A Euro Area contraction pulled down the Global Services PMI. The USA, comprising 28.1% of the total PMI, slipped to a 6-month low, but held up relatively well. The report noted, "The global services output index, excluding the US, suggests that services activity stagnated (on average) outside of the US". In contrast,  China, India, and Brazil expanded at an increasing rate.

David Hensley, Director of Global Economics Coordination at JPMorgan, said, "The rate of expansion in global service sector business activity and new orders eased sharply at the start of the second quarter. The labour market held up comparatively well, however, suggesting that service providers may expect the sector to hold its ground over the coming months".

JPMorgan Global Services PMI The April 2012 PMI of 52.0 (-3.0) indicates expansion at a much slower rate and is a 6-month low. The past 2 months of decreases (-4.3) have negated almost all of the previous 4 months gains (+4.5). The PMI peaked in April 2010 at 56.8, February 2011 at 59.2 (post-recession high), and February 2012 at 56.3. An intermediate term cyclical low of 50.3 was set in November 2009. A PMI greater than 50 indicates global services are expanding. Historical back data has been slightly revised, only the latest 5 months of revisions are reflected on chart. The general trend is not affected by the revisions.



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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