Global economic growth slows slightly at start of Q3 – PMI surveys

The beginning of the third quarter witnessed a slight easing of global economic growth, showed the PMI surveys. However, the rate of growth continued to be strong. Survey indicators such as new orders and hiring imply the deceleration might be temporary.

Growth rose slightly higher in the United States, closing the gap with the euro area where the growth rate continued to be close to a six-year high. Meanwhile, an upturn in China was unsuccessful to avoid a deceleration in emerging market growth, boosted partially by a slump in activity in India, where business was impacted by the new sales tax.

The PMI surveys also indicate the hiring trend is being led by the developed world, where solid data in the U.S., euro area, Japan and the U.K, in recent months have aided in pushing the overall rate of job creation to a near-decade high. In stark contrast, a net loss of jobs was seen in the emerging markets, noted IHS Markit.

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