The following is an extract from IHS Markit's monthly PMI overview presentation. For the full report please click on the link at the bottom of the article.
Global PMI slips to 27-month low
The global economy ended 2018 on a disappointing note. The JPMorgan Global PMI, compiled by IHS Markit, sank to its lowest for 27 months, extending a slowdown trend that has been evident throughout the past year. The latest reading is commensurate with worldwide GDP growth slowing close to 2%. Other indicators showed new order inflows at their lowest since September 2016 and job creation hitting a 20-month low. Optimism towards the year ahead meanwhile slipped to its weakest for two-and-a-half years, suggesting the slowdown has further to run.
Deteriorating goods trade once again sat at the heart of the slowdown. Global goods exports dropped (albeit only modestly) for a fourth straight month to act as an ongoing drag on the manufacturing sector. Service sector growth remained more resilient, though also lost some momentum to register the second-smallest expansion of activity for just over two years.