Global PMI suggests recovery is losing impetus

LONDON, Sept 3 (BestGrowthStock) – Growth in the private sector lost
impetus in August as the pace slowed in both the service and
manufacturing sectors, a survey showed on Friday.

The Global All-Industry Output Index, produced by JP Morgan
with research and supply management organisations, fell to 53.9
in August from 54.6 in July, although still above the 50 mark
that divides growth from contraction. [ID:nWLA2166]

“August PMI data pointed to a further downshift in the rate
of recovery of the global economy. Growth of global GDP is
likely to slow to around 2.5 percent in the third quarter, down
from a peak of almost 4 percent in the second quarter,” said
David Hensley at JP Morgan

The Global Services index fell to 53.5 in August from 54.3
in July, but spent its thirteenth month above the 50 mark.

However, global service sector employment fell for the first
time in five months in August, although the rate of reduction
was only marginal with job losses seen in the U.S., Japan, the
UK, Australia and Russia.

Data released earlier on Friday showed the pace of recovery
in the euro zone’s dominant service sector was barely changed in
August from July as an upturn in Germany masked a return to a
sub-50 reading in Spain.

The U.S. non-manufacturing sector grew in August for an
eighth straight month but at a slower pace than July and at a
rate that was below expectations, according to an industry
report released on Friday.

Figures on Wednesday showed global manufacturing activity
expanded at a slower pace in August than in the previous month,
reflecting slower growth of new orders and a waning boost from
inventory building. [ID:nLDE6801Q3]

The global index combines survey data from countries
including the United States, Japan, Germany, France, Britain,
China and Russia.

(Reporting by Jonathan Cable; Editing by Ron Askew)

Global PMI suggests recovery is losing impetus