Growth in global economy slows to 10-month low-PMI
Growth in the global economy slowed to a ten-month low in September, with rates of expansion easing in both the services and manufacturing sectors, a survey showed today.business Updated: Oct 05, 2010 22:00 IST
Growth in the global economy slowed to a ten-month low in September, with rates of expansion easing in both the services and manufacturing sectors, a survey showed on Tuesday.
The Global Total Output index, produced by JP Morgan with research and supply management organisations, fell to 52.6 in September from 53.9 in August, but held comfortably above the 50 mark that divides growth from contraction.
The Global Services index eased to 52.3 in September from 53.5 in August.
"The slowdown remains broad-based, with both manufacturers and service providers seeing weaker growth. The signs point to continued soft growth through year's end," said David Hensley at JP Morgan.
Figures on Friday showed the pace of global manufacturing growth slipped in September to a 14-month low as the expansion of order books and exports eased.
Firms reported rising input costs for the fourteenth successive month but said new orders had improved from last month.
Service sector employment was little changed over the month with jobs added in the euro zone, most of Asia and Brazil but Japan, Russia and Australia all reported job losses.
Data released earlier on Tuesday showed growth slowed among Chinese and euro zone services firms in September, with Ireland and Spain tipping back into decline and Asia's emerging powerhouses continuing to outstrip Europe.
The pace of growth in the U.S. services sector accelerated last month more quickly than economists had expected and hiring also picked up, the Institute for Supply Management said on Tuesday.
The JP Morgan index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.