The rate of global economic expansion eased to a three month low in April.
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The J.P.Morgan Global Composite Output Index1 which is produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM posted 52.1, down from March’s 52.7, to remain above the neutral 50.0 mark for 79 consecutive months.
Note: later-than-usual release dates meant PMI data for Japan (manufacturing and services) were not available to include in the April 2019 global readings.
The global service sector continued to outperform its manufacturing counterpart in April.
This was despite output growth easing to a three-month low, with decelerations signalled across the business, consumer and financial services sub-industries.
Conditions in manufacturing remained lacklustre, with production still rising at a near-stagnant pace.
The consumer goods sub-sector was a bright spot, seeing growth accelerate to a three-month high.
In contrast, output contracted in both the intermediate and investment goods industries.
National PMI data signalled that the strongest rates of output growth were seen in Ireland, Russia, the US, Spain and China.
Italy was the only nation covered to register contraction.
Australia saw economic activity stagnate, while upturns were weak in the UK, France and Brazil.
Global composite new business rose at a slower pace in April.
Consumer goods was the only category to see a stronger expansion, while contractions were signalled in the intermediate and investment goods sectors.
Upturns continued at consumer, business and financial service providers, albeit at slower rates than in March.
Subdued international trade flows weighed on global economic growth in April, with all-industry new export business falling for the fifth straight month.
A further drop in manufacturing new export orders was only partially offset by a modest increase at service providers.
Germany saw a marked decrease in foreign demand, China a modest decline, and the US mild growth.
April saw an expansion in global employment.
Although the rate of increase steadied, it remained among the weakest registered over the past two years.
Job creation at manufacturers slowed closer to stagnation, but edged higher at service providers.
Business optimism dipped to a near three-year low in April, with confidence easing at manufacturers and service providers alike.
Price inflationary pressures slowed, with rates of increase in output charges and input costs both moderating.
Inflation of both price measures remained (on average) stronger in developed nations compared to emerging markets. ■