World economy slows heading into year-end - PMIs

Wed Nov 7, 2012 12:16am IST

A labourer works at a factory of Sany Heavy Industry Co Ltd on the outskirt of Shanghai, October 26, 2012. REUTERS/Darcy Holdorf

A labourer works at a factory of Sany Heavy Industry Co Ltd on the outskirt of Shanghai, October 26, 2012.

Credit: Reuters/Darcy Holdorf

Related Topics

REUTERS - The world economy slowed in October, dragged back mainly by a shrinking manufacturing sector, a business survey showed on Tuesday.

JPMorgan's Global All-Industry Output Index fell in October to 51.3 from September's 52.4, although it stayed above the 50 mark dividing growth from contraction.

"The start of the final quarter has seen global economic growth continue to track at a below long-run trend pace," said David Hensley, director of global economics coordination at JPMorgan.

"A contracting manufacturing sector remains the main drag, while the larger service sector remains on a subdued expansion path."

The global services index also fell to 52.1 from September's 53.8, although it still signalled expansion for a 39th straight month.

"Although rates of growth in both output and new orders lost momentum, companies were sufficiently encouraged to raise employment for the second time in the past three months," said Hensley.

JPMorgan said the euro zone remained the biggest setback for the world's services economy, after data earlier on Tuesday confirmed a steep downturn for the currency zone's biggest economies.

(Editing by Ruth Pitchford)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Healthcare Corruption

REUTERS SHOWCASE

Deal Talk

Deal Talk

Exclusive - Lupin, U.S. firms weigh bids for GSK's mature drugs: sources  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Classifying Banks

Classifying Banks

RBI to start announcing too-big-to-fail banks in Aug 2015  Full Article 

Food Scandal

Food Scandal

Starbucks, Burger King dragged in as China food scandal spreads.  Full Article 

Bigger iPhones

Bigger iPhones

Apple asks suppliers to produce up to 80 mln large-screen iPhones - WSJ.  Full Article 

Wholesale Biz

Wholesale Biz

Wal-Mart adds $102.9 million in Indian wholesale business in June.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage