Global Economic Growth Shows Resilience in June
In the latest report from S&P Global based on the Purchasing Managers’ Index, international economic growth demonstrated resilience in June, maintaining the second-highest level observed in the past 13 months.
Global Composite PMI Edges Down
The JP Morgan global composite PMI, compiled by S&P Global, edged down to 52.9 in June from 53.7 in May. This slight decrease reflects a slowdown in the expansion rates of manufacturing production and service sector business activities worldwide.
Saudi Arabia’s Non-Oil Private Sector PMI Stays Strong
Amidst the global trend, Saudi Arabia’s non-oil private sector PMI remained strong at 55 in June, fueled by rising demand, increased output levels, and a notable uptick in employment.
PMI Reading Above 50 Indicates Economic Expansion
A PMI reading above 50 signifies economic expansion, while below 50 indicates contraction. It measures economic trends in manufacturing based on monthly surveys of supply chain managers covering upstream and downstream activities.
US and India Growth Accelerates
The report highlighted accelerated PMI growth rates in the US, India, and Brazil. In the US, output expanded at the fastest pace since April 2022, driven by robust services activity which offset subdued manufacturing growth.
Global Sub-Sectors Stable
The US-based firm noted that growth became more broad-based across all global sub-sectors amidst the slowing of expansion. All of the 25 sub-sectors covered by the PMI avoided contraction globally in June for the first time since July 2021.
Future Outlook
Looking ahead, S&P Global warned of darkening near-term global prospects in June, with business expectations for the year ahead reaching a seven-month low, particularly affected by post-election uncertainties in India and Europe.