Global economy remains in slow lane in August

PMI survey data indicated that the global economic growth accelerated higher for the third straight month in August. However, it was unsuccessful in breaking out of its worst spell for three years, said IHS Markit in a research note. In the meantime, job creation decelerated to a three-year low, underlining broad based caution regarding the global economic outlook amongst corporates.

The emerging nations are benefitting from their best growth in one-and-a-half years. However, the developed markets continue to be trapped in the slow lane. The PMI surveys indicated towards the weak growth in the third quarter in Eurozone and the U.S., with a hint of stagnation in Japan.

The business in U.K. rebounded after the Brexit vote resulted in the activity to drop in July. However, it appears likely to manage just marginal growth in the third quarter. Meanwhile, inflationary pressures continued to be weak, though prices indicated certain sign of firming in the midst of the stronger emerging market growth witnessed in recent months, according to Markit Economics.