Tuesday, August 05 16:18:01
Global business activity picked up last month at its fastest pace since early 2011 as sustained strengthening in the service industry offset a mild deceleration in factory output, a survey showed today.
J.P.Morgan's Global All-Industry Output Index, produced with Markit, rose to 55.5 from June's 55.4, holding above the 50 mark that divides growth from contraction for the 22nd month running and chalking up its highest reading since February 2011.
"The July manufacturing and service sector PMI surveys signal a robust start to the second half of the year," said Joseph Lupton, senior economist at J.P.Morgan.
"Taken together, the July surveys point to global GDP growth running well above its trend in the third quarter ... This would mark a welcome relief following the disappointing first half of the year."
That trend may well continue as a new orders index stayed strong at 54.5, albeit down from June's 40-month high of 55.9.
The robust U.S. and British economies underpinned global growth, J.P. Morgan said. (Reuters)
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