Global economic growth higher at start of Q4 but outlook dim, says IHS Markit

The PMI surveys indicated a widespread upturn in October, suggesting that the global economic growth jumped higher in the month. The data showed that the U.K. euro area, U.S. and Japanese economies are all expanding at the most rapid paces since the turn of 2016, whereas growth in Russia, China and India has quickened to the most rapid for just over three and a half years, noted IHS Markit in a research report.

But the global economic outlook is being clouded by political uncertainty. The October Markit Global Business Outlook Survey, which is the largest poll of its kind, was being dominated by Brexit and the U.S. election. It pushed down the worldwide business sentiment to its joint-lowest since the global financial crisis, stated IHS Markit.

Whether the dull outlook continues and disrupts the upturn hinted by the monthly PMI data quite clearly depends to a greater degree on how the changing politics in the U.K. and U.S. impact business activity and feed through to broader global problems, added IHS Markit.