Global Private Sector Growth at Weakest Pace Since Aug. '09

Reuters

The global private sector grew at its weakest pace since August 2009 last month as a subdued service sector added to feeble growth amongst manufacturers, a business survey showed on Tuesday.

JPMorgan's Global All-Industry Output index, which is based on the results of purchasing managers surveys of thousands of companies worldwide, nudged down to 51.5 in August from July's 52.5.

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The index has been above the 50 mark that divides growth from contraction since July 2009. "Growth of global output eased to its weakest in the recovery-todate. Although manufacturing was the main drag, the service sector fared only moderately better," said David Hensley at JPMorgan.

The global services PMI fell to 52.0 from July's 53.0, echoing figures on Thursday which showed growth all but evaporated in the manufacturing sector.

Earlier data showed the pace of expansion in the U.S. services sector unexpectedly accelerated in August, snapping a three-month streak of slower growth.

But on Monday weak purchasing managers indexes (PMIs) from the euro zone, China, India and Britain echoed surveys last week that showed world factory output slowed in August.

The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.