Purchasing managers data released this week from around the world showed that the global economy continued to expand in April, but at a slightly slower pace than in March.
The US and UK appear to be two of the strongest economies in the world. For both countries, both the manufacturing and service indexes increased to indicate that expansion picked up steam in April. Other European economies are also showing strength. Spain had the second highest reading in the services survey. Germany and Italy also each showed strength in both surveys.
On the negative end, three countries went from readings above 50 to below 50 (indicating contraction) in the manufacturing survey. South Africa, Brazil and Japan all declined below 50. Seven of the 24 manufacturing surveys tracked here are now indicating economies in contraction. Of the seven countries in contraction, four are resource driven economies. Australia’s PMI in particular indicated severe contraction. This is likely a response to continued contraction in Chinese manufacturing.
It’s also noteworthy that both of Japan’s PMI surveys registered steep declines. Commentary indicated that this was a response to the sales tax increase in that country.
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