Global PMI sags slightly but still signals strong growth

LONDON, June 3 (BestGrowthStock) – The pace of global growth in the
private sector sagged a little in May as order books expanded
more slowly, but overall it remained near historically high
levels, according to a survey on Thursday.

The Global All-Industry Output Index, produced by JPMorgan
with research and supply management organisations, fell to 57.0
in May from April’s 34-month high of 57.7 — still well above
the 50 mark that divides growth from contraction.

New orders at services and manufacturing companies increased
at a healthy rate in May, although not quite at the same clip as
in April, the survey showed.

“Rates of expansion in activity and new orders have cooled
recently and may point to the peaking of the initial phase of
the recovery,” said David Hensley at JPMorgan.

“Jobs were added again in May, with growth spreading from
manufacturing into services.”

Euro zone services PMI released earlier on Thursday showed
the first jobs growth in two years for companies ranging from
banks to restaurants.

U.S. non-farm payrolls, released on Friday and a key
employment statistic in the world’s biggest economy, are
expected to show 513,000 jobs were added in May, a Reuters poll
showed.

The Global Services Index dipped slightly in May to 56.3
from 56.8 in April, marginally below that month’s 33-month high
as growth in new orders slowed.

“The rate of increase in new business has slowed
substantially over the past two months, which may temper growth
heading into the third quarter,” said JPMorgan’s Hensley.

PMI surveys from the euro zone, Britain and China all
indicated slowing growth of new orders, as uncertainty about the
fiscal health of euro zone states and policy tightening in China
start to crimp consumer demand. [ID:nLDE6520L5]

The Institute for Supply Management’s index for
non-manufacturing U.S. companies held unchanged in May at 55.4
and also indicated slowing growth of new business.
[ID:nEAP101300]

Stock Market Investing

(Reporting by Andy Bruce, editing by John Stonestreet)

Global PMI sags slightly but still signals strong growth