The World Economy... - 2/6/2010

Global Manufacturing Activities Showing Signs Of Weakness

Manufacturing activities from China to the US and Euroland showed signs of weakness in May, suggesting that a rebound from the worst global recession since World War II is beginning to ease and global economic growth will likely grow at a more moderate pace in 2H 2010. As it stands, the global Purchasing Managers Index (PMI) for the manufacturing sector, an index compiled by JP Morgan and Markit Economics in London, moderated to 57.2 in May, from 57.8 in April and compared with 56.8 in March. Readings above 50 indicate the sector is expanding while readings below 50 denote contraction. This was the first month of easing after picking up for two consecutive months, on account of slower increases in both output and new orders. Similarly, input prices eased during the month, pointing to a slowdown in price pressure. Manufacturers, however, continued to increase their recruitment of workers during the month.

The World Economy... - 2/6/2010