Global PMI up to 52.6 in December
This is the highest in four months.
Global PMI inched to 52.6 in December from 52.4 in the previous month, according to the J.P. Morgan Global PMI Composite Output Index, compiled by S&P Global.
The latest reading was the highest in four months, with the global economy growing at an annualised rate of 2.8%.
The most recent expansion remained uneven, with growth confined to the service sector, whilst manufacturing output declined for the first time in three months.
The report also noted that although it is marginal, the recent downturn in the goods-producing sector reflected a lack of demand for goods—particularly export demand—amidst concerns over the impact of the potential impact of US tariffs on global trade.
Growth in developed markets accelerated in December, mainly due to improvements in the US. Although marginal output gains were also seen in Japan, the UK, and Australia, other major developed economies experienced stagnant growth.
In emerging markets, growth was more widespread but decelerated from November. India led the BRIC economies, whilst the others saw growth ease toward year-end, with Mainland China reporting only modest growth and the weakest output expansion for three months.
Global selling price inflation hit its highest level since September amidst rising service charges, which added to uncertainty regarding the monetary policy outlook.
Business optimism also declined in December, with growing concerns over growth in 2025 due to changes in US government policies.
