The world economy expands – but at a slow pace
January 9, 2014
2013 ended with all the key sectors of the world economy expanding, at least according to the monthly purchasing managers indexes (PMIs) for December. The PMIs have been regarded as the most ‘high-frequercy’ i.e most immediate measures of economic activity in various countries. But remember, the PMIs are only surveys of how well corporate managers think they are doing. They are not hard data on the expansion or contraction of industrial output or in so-called service sectors.
Looking at the combined PMIs for manufacturing and services in December, it looks like this.