GDP Weighted PMI Consistent With Expanding Global Economy

by: Cullen Roche

This morning's global PMI readings were a mixed bag on the whole, but showed mild improvement. Notable improvements came from the EMU, U.S., and China.

The EMU is clearly still in recession, but showing signs of modest improvement as the PMI moves from 45.8 to 46.2. This is still a contraction, but we're seeing some stabilization, if nothing else. The U.S. Markit PMI improved to 52.8 from the October reading of 51. And China showed some mild improvement to 50.5 -- its highest reading in 13 months.

The globally weighted GDP index (updated monthly at Orcam Investment Research) moved up to 50.3 from 49.4. This is the first expansion reading since May of this year.

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