GLOBALcycle brightens up in May

The GLOBALcycle indicator, which tracks economic conditions in economies covering 80% of world GDP, increased in May after a weak start to the year. Economic conditions improved in EM, led primarily by China. Meanwhile, business conditions strengthened modestly in the developed world. The activity pace seems to have remained solid in the euro area and improved in Japan, but failed to pick up in the US following the 1Q slowdown. All in all, the indicator suggests global growth is edging back to the 3.0-3.5% range in the second quarter, says BofAML Research Media.