Global PMI at 34-month high but backlogs dwindle

LONDON, May 6 (BestGrowthStock) – The pace of global growth
accelerated in April, expanding at its fastest pace since June
2007, but service sector firms saw a fall in backlogs of orders
and a slowdown in the growth of new business, a survey showed on
Thursday.

The Global All-Industry Output Index, produced by JP Morgan
with research and supply management organisations, rose to 57.7
in April from 56.7 in March, staying above the 50.0 mark that
divides growth from contraction for the ninth month.

“The April PMI data point to a robust start to the second
quarter for the global economy, with growth of GDP recovering to
a pre-recession level,” said David Hensley, a director at JP
Morgan. “The recovery is still being led by manufacturing,
although the service sector rebound is gaining momentum.”

The Global Services Index rose to 56.8 last month from 56.0
in March, its highest reading since July 2007, but the backlogs
of work index dropped to 49.4, having risen above 50 last month
for the first time since August 2007.

The new business index fell to 56.0 from 57.2 in March.

Data released on Tuesday showed global manufacturing
activity expanded at its fastest pace since May 2004 in April as
output and new orders surged to new multi-year highs.
[ID:nLDE643254]

Figures on Wednesday showed the euro zone’s dominant service
sector expanded at a slightly faster pace last month than
initially thought while figures from Britain on Thursday showed
service sector activity slowed unexpectedly after a volcanic ash
cloud that grounded air traffic hit transport firms. [EUR/PMIS]
[GB/PMIS]

The pace of growth in the U.S. services sector, which
accounts for about 80 percent of U.S. economic activity, was
unchanged in April compared to the month before, the Institute
for Supply Management said on Wednesday.
The index combines survey data from countries including the
U.S., Japan, Germany, France, Britain, China and Russia.

Investing Research

(Reporting by Jonathan Cable)

Global PMI at 34-month high but backlogs dwindle