« UK Q2 GDP strong, money data awaited for H2 assessment | Main | UK MPC model suggesting moderate easing package »

Global economy still firming

Posted on Tuesday, July 26, 2016 at 04:06PM by Registered CommenterSimon Ward | CommentsPost a Comment

The view here that an upswing in global economic growth is under way and will not be derailed by “Brexit” received support from last week’s “flash” purchasing managers’ surveys for July, showing stronger results in the US and Japan and little change in the Eurozone, despite the expected UK slump.

There were no flash results for China but the Market News International business sentiment indicator rose further last month to its highest level since October – see here.

The American Chemical Council today released a July reading of its chemical activity barometer – a leading indicator of the general economy that exploits the chemical industry’s sensitivity to cyclical changes. Six-month growth in the barometer rose further to its fastest since 2011 – see first chart.

US second-quarter GDP numbers later this week are expected to show a recovery in growth despite a decline in stockbuilding last quarter. A rebound in real narrow money expansion in late 2015 had suggested that economic momentum would revive around mid-2016 and money numbers through early July continue to give a positive signal – second chart.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>