Global economic growth remains stable in November: PMI Surveys

The global economy has demonstrated ongoing resilience amidst political surprises in November. Concerns regarding ‘Brexit’ and political instability in the eurozone seem to have been greatly brushed aside as has the unexpected U.S. presidential election result. The November PMI surveys indicated that global economic growth is remaining steady at October’s respectable eleven month high.

The U.K, U.S., Japanese and euroarea economies are all enjoying their most robust quarters so far in 2016, while emerging markets are witnessing their best quarterly expansion for more than two years, led by Russia and China. Even India would have recorded stronger growth if its economy had not been disrupted by the government’s withdrawal of high value bank notes, according to Markit.

But the upturn has been accompanied by inflationary pressures, with manufacturing costs increasing at the most steepest pace for five years. In particular, solid increases have been witnessed in nations with weakened exchange rates, especially in the U.K.