PMI^® Pulse: Our Data Wrap for June

Global economy picks up speed in June, but jobs are cut for a second month running amid high costs and uncertain outlook

June’s worldwide Purchasing Managers’ Index™ (PMI^®) data points to a global economy that is still growing, but with momentum shifting in ways that matter for strategy. Lower energy prices and easing Middle East supply concerns have helped revive demand in some consumer-facing services, while manufacturing momentum is cooling as precautionary stock building fades.

The bigger signal, however, is the disconnect between output and jobs: growth has edged higher, but employment is falling as companies face high costs, weaker expectations and persistent uncertainty. With the US and East Asia expanding more robustly while Europe and the ASEAN region lag, our PMI® Pulse offers a data wrap of where growth, inflation and business confidence are heading next.