Over the last four months, I have been suggesting that markets participants pay close attention to Global PMIs, and in particular to the emerging signals of firming global economic growth. January 2017 figures did not disappoint on this front.
I covered Manufacturing PMI yesterday in a post available here.
Today, we got the reading for Services and Composite data. Both printed 53.9, which marks statistically significant expansion and a rise on 4Q 2016 figures, suggesting that global growth is still accelerating. Crucially, new orders are continuing to rise as well.
Per Markit: ‘The J. P. Morgan Global All-Industry Output Index… posted 53.9 in January, its best reading since March 2015 and up from 53.6 in December. The index has now signalled expansion for 52 consecutive months.’
One caveat is that China data is not included in both Manufacturing and Services PMI readings. But, As shown here: China Manufacturing PMI posted lacklustre performance in January, barely staying above 50.0 level.
This post was published at True Economics on Friday, February 3, 2017.
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