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:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets.  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue.  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet.  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Deal Talk

Deal Talk

China's private sector suitors to drive Asian M&A deals in 2015.  Full Article 

Property Tycoon

Property Tycoon

Wang Jianlin, China's property tycoon, finds golden path to billions.  Full Article 

Cybersecurity

Cybersecurity

Internet outage seen in N. Korea amid U.S. hacking dispute.  Full Article 

Reuters India Mobile

Reuters India Mobile

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