PMI survey data indicated that the global economic growth accelerated higher
for the third straight month in August. However, it was unsuccessful in breaking
out of its worst spell for three years, said IHS Markit in a research note. In
the meantime, job creation decelerated to a three-year low, underlining broad
based caution regarding the global economic outlook amongst
corporates.
The emerging nations are benefitting from their best growth
in one-and-a-half years. However, the developed markets continue to be trapped
in the slow lane. The PMI surveys indicated towards the weak growth in the third
quarter in Eurozone and the U.S., with a hint of stagnation in Japan.
The
business in U.K. rebounded after the Brexit vote resulted in the activity to
drop in July. However, it appears likely to manage just marginal growth in the
third quarter. Meanwhile, inflationary pressures continued to be weak, though
prices indicated certain sign of firming in the midst of the stronger emerging
market growth witnessed in recent months, according to Markit Economics.
