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More good news with PMI showing strengthened global growth
Firstly, what is PMI (Purchasing Managers Index)? Basically, it is a measure of the prevailing direction of economic trends in manufacturing. The PMI is based on a monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity. The index is represented as a score of 50 being no change, a score below 50 is shrinkage and above 50 is growth. Generally, it is accepted as a great indicator as to how the world economy is fairing.
Although the July report is cautious about the growth in the market, which is due to the work being done to contain COVID-19, the good news is after a period of 6 months with numbers below 50, July is a global number of 50.8. This is the first growth in 6 months. If this is not reason to celebrate then the backdrop of the lowest number ever recorded was only in April at 26.2, making this an amazing bounce back.
As per my last article regarding growth signs in hiring I know we still have a long road ahead to recovery and it will be tough and hard work. However, with experts estimating that 3 years’ worth of advancement in technology have taken place in the last 3 months, I am optimistic we can do this.
In fact, in the UK the composite PMI figure was at a 5 year high in July and the Eurozone as a whole faired well with Germany at a 23 month high and France at a 29 month high. Some parts of the world did not fair so well with US just passing the 50 mark and India seeing a number below 40.
Below is a table that shows the Global Sector PMI Output Index (source IHS Markit)
From the above information you can see a number of sectors are seeing good expansion but equally a number of sectors are still really suffering. Hopefully with all the government support and being sensible we will keep seeing more and more businesses returning to normal. At Chase & Holland we are here to help whether it is to assist with recruitment because of expansion or redeployment if you need to restructure or downsize. We want to be with you every step of the way. If you would like a full copy of the report that this information was drawn from please contact ian.holland@chaseandholland.com
