Global economic activity accelerates in October -PMI

LONDON, Nov 4 (BestGrowthStock) – Activity in the global economy
accelerated in October for the first time since April, as rates
of expansion improved in both manufacturing and services,
business surveys showed on Thursday.

The Global Total Output index, produced by JP Morgan with
research and supply management organisations, jumped to 54.8
last month from 52.6 in September, spending its fifteenth month
above the 50 mark that divides growth from contraction.

The Global Services index bounced to 54.6 in October from
52.3 in the previous month.
“The latest PMI data suggest that the global economy made a
solid start to the final quarter. However, it looks as if the
recovery is still failing to produce meaningful job creation,
which may act as a brake on growth heading into 2011,” said
David Hensley at JP Morgan.

Figures on Tuesday showed the pace of global manufacturing
activity accelerated for the first time in six months, supported
by new orders in the United States and China. [ID:nLDE6A115S]

But part of the increase in economic output was supported by
a reduction in outstanding business with backlogs of work
falling for the third month running in October at both
manufacturers and service providers.

The employment index rose to 50.9 from 50.4 in September
with jobs growth in the U.S., the euro zone, China, the UK,
India and Brazil while job cuts were signalled in Japan.

Data released on Thursday showed growth in the euro zone’s
dominant service sector lost steam last month as a slowdown in
smaller economies and a downturn in Spain outweighed an upswing
in activity in Germany. [EUR/PMIS]

The Institute for Supply Management said on Wednesday the
U.S. services sector grew more quickly than expected in October,
its 10th straight month of expansion. [ID:nN03275102]

The JP Morgan index combines survey data from countries
including the United States, Japan, Germany, France, Britain,
China and Russia.
(For a table see [ID:nWLA7175])

(Reporting by Jonathan Cable; Editing by Toby Chopra)

Global economic activity accelerates in October -PMI