Global growth at 8-month high in Feb; strongest expansion in India

Both the United States and Europe showed signs of pulling out of downturns.

India’s output growth re-accelerated after easing in January to record one of the strongest expansions seen over the past decade. Strong gains were seen in both manufacturing and services in the country.

Growth was led by the service sector, but was also buoyed by a return to growth of manufacturing output, it found. The manufacturing sector reported the first expansion of output for seven months, albeit only recording very modest growth. The factory expansion was nevertheless the strongest since last June.

Companies cited reduced recession risks, a peaking of price pressures, improved supply chains and a reopening of the Chinese economy to all have helped spur demand, notably among consumers, and to have boosted business confidence and hiring, S&P Global said in a release.

At 52.1, up from 49.7 in January, the global PMI—compiled by S&P Global across over 40 economies and sponsored by JPMorgan—signalled the first increase in output for seven months and helps allay worries of an imminent worldwide recession, the press release said.

The rise was the largest recorded since last June and indicative of gross domestic product (GDP) rising at a quarterly annualised rate of approximately 2.5 per cent.

In the United States, output rose marginally after seven months of decline, as a modest improvement in service sector activity helped offset a further marked manufacturing downturn.

In the eurozone, output rose for a second successive month, building on the minor gain seen in January to record the strongest expansion since last June thanks to faster service sector growth and a stabilisation of the manufacturing sector after eight months of contraction.

In the United Kingdom, output grew especially strongly, notching up the best performance since last June on the back of reviving growth in both manufacturing and services, the latter enjoying the stronger gain of the two sectors.

Business activity growth in Japan meanwhile ticked higher, with output rising modestly for a second straight month.

Russia saw output revive, with growth hitting a 20-month high despite exports continuing to fall sharply due to sanctions.

Fibre2Fashion News Desk (DS)