The global economy continued it steady progress as the final quarter of the year began. The J.P. Morgan Global All-Industry Output Index, produced by J.P. Morgan and IHS Markit, rose a fraction in October to 54. The headline index has signaled growth for the past 61 months.
“October saw rates of expansion in global economic activity and employment edge higher, despite new order growth ticking lower, suggesting that the global economy is maintaining its solid and steady growth path,” said David Hensley, director of global economic coordination at J.P. Morgan. “Signs that price inflation eased should provide some respite to firms and ensure cost pressures will not constrain growth in the months ahead.”
Activity increased in all six categories of the survey, indicating broad-based expansion. Consumer-facing sectors such as consumer goods and services were weaker than other industries, such as intermediate goods, investment goods, business services and financial services.
One of the best performing regions is the eurozone. Though the rate of expansion of its economic activity eased, it is one of the best registered during the past six-and-a-half years, IHS Markit said. Growth accelerated in France while it eased in Germany, Italy, Spain and Ireland.
New orders increased globally for the hundredth month in October, though the pace of expansion eased to a four-month low. Business optimism increased from new business intakes and still-rising outstanding business. Backlogs of work have been increasing for 15 months. Rates of inflation in input costs and output charges slowed in October, easing price pressures, IHS Markit said.
– Adam Fusco, associate editor