The global economy indicated signs of rebounding health in August. The rate of global economic growth rose to its most rapid in more than two years, showed the latest PMI surveys, with employment rising higher as companies increasingly looked to expand capacity consistent with stronger demand, noted IHS Markit. Job creation in developed world is currently running at its highest for ten years. In spite of the improvements to capacity, the surveys also found rising global price pressures as demand often exceeded supply.
The PMI surveys, are indicating strong third quarter performances for the U.S., Japan and euro area, albeit with U.S. growth expected to be hampered by hurricanes Harvey and Irma. But, strong business optimism implies that a U.S. recovery would be seen later in 2017. In the meantime, the U.K. lagged further behind amidst Brexit-related uncertainty while rising inflation also curbed growth.
Meanwhile, signs of stabilization were seen amongst emerging markets in Brazil and India. China appears to have gained momentum, but Russia continued to be the most rapidly growing BRIC nation.
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