Global PMI nudges up in Jan as manufacturing leads

LONDON, Feb 3 (BestGrowthStock) – The pace of global growth
stabilised at a modest pace in January as an acceleration in
manufacturing output was offset by a moderation in service
sector growth, a survey showed on Wednesday.

The Global Total Output Index, produced by JP Morgan with
research and supply management organisations, nudged up to 53.2
in January from 53.1 in December, staying above the 50.0 mark
that divides growth from contraction for the sixth month.
But the survey compiler showed some concern about the
distribution of growth at the turn of the year.

“It is worrying to see that the manufacturing and inventory
led rebound has yet to fully filter through to services, leaving
growth heavily dependent on the industrial sector,” said David
Hensley, a director at JP Morgan.

The Global Services Index fell to 51.2 in January from 51.8
the previous month, with activity rising at a slower pace in the
United States, Britain and the euro zone. Data released on
Monday showed global manufacturing activity expanded at its
fastest pace in 5-1/2 years in January. [ID:nLDE6101ID]

Figures released in the United States showed its service
sector, which accounts for about 80 percent of U.S. economic
activity, grew only very slightly in January after having shrunk
in December, missing expectations for more robust growth.

Earlier data showed the euro zone’s dominant service sector
also expanded at a slower pace last month than in December, with
a similar picture painted in Britain and China.

The index combines survey data from countries including the
U.S., Japan, Germany, France, Britain, China and
Russia.

Stock Today

(Reporting by Jonathan Cable; Editing by Andy Bruce)

Global PMI nudges up in Jan as manufacturing leads