Global economic growth hits 32-month high in October PMIs

Friday, 8 November 2013 00:00 - - {{hitsCtrl.values.hits}}

LONDON (Reuters): Global economic growth accelerated in October to a 32-month high, bolstered by a solid improvement in new business, a survey showed on Wednesday.

JPMorgan’s Global All-Industry Output index, produced with Markit, rose to 55.5 in October from September’s 53.6, comfortably above the 50 threshold for growth and its highest reading since February 2011. “The global economy has started the final quarter on a positive footing. All-industry output accelerated October, indicating that global GDP is on track to post a decent outcome in Q4,” said David Hensley, a Director at JPMorgan. “The broad-base of the upturn across manufacturing output and services activity is encouraging.” A global services PMI bounced to 56.4 in October from September’s 53.7. Data on Monday showed global manufacturing activity increased at its fastest pace in over two years. Global employment rose for the 13th month in a row in October, with the rate of increase hitting a 32-month high. The euro zone’s economic recovery lost a little momentum last month, according to earlier PMIs that showed only modest growth in German and French businesses. Data from non-euro zone Britain impressed again, while Chinese and US service-sector business activity picked up.