Global Growth Slows as Manufacturing Sector Contracts
August saw growth of the global economy ease to its weakest pace since the recovery began in August 2009. Manufacturing was the weaker link during the latest survey period, as production fell for the first time in 27 months. The performance of the service sector was also subdued, with the rate of expansion in business activity slipping to a four-month low.
The JPMorgan Global All-Industry Output Index fell to 51.5 in August, from 52.5 in July, to remain well below its long-run trend level. Moreover, the average reading of the headline index so far in Q3 2011 (52.0) is lower than in Q2 (52.3) and substantially weaker than the opening quarter of the year (57.3).