Global growth held back by emerging market stagnation

Global economic growth picked up slightly for the first time in four months in July. The JPMorgan Global PMI rose from 53.1 to 53.4 in July to signal a rate of global GDP growth of just over 2% per annum. A marked divergence was once again evident however, with robust expansion in the developed world contrasting with stagnation in the emerging markets. 

Signs of weaker economic growth in China in particular rattled the markets, while solid US and UK upturns added to calls for interest rate hikes. Sighs of relief were meanwhile seen as the eurozone showed resilience in the face of the Greek debt crisis and ongoing moderate growth was recorded in Japan.