First quarter saw strong growth in the Manufacturing sector, led by China
Latest global economic results indicate strong growth in the manufacturing sector, Europe and China posted strong month over month growth, concerns loom over U.S.’s trade policy updates.
China led the Asian countries as it reported the fastest pace in the last five years. Europe, India, Japan and most of the emerging Asia reported growth.
Purchasing Managers Index (PMI) for Euro zone came in at 56 which is significantly above the 50 which denotes a expansion vs contraction. Challenges with full impact of Brexit are still being assessed.
China’s Purchasing Managers Index (PMI) improved to 51.8 which represents the strongest reading since 2012. Biggest risk to China’s performance through the rest of the year will be U.S. trade policies and the recent executive orders signed by President Trump. The executive orders will result in a study of trade deficit causes and import tariffs.
India posted the fastest growth in the last 6 months. Experts note that Indian market seems to have recovered from the high denomination currency ban that Prime Minister Modi implemented in late 2016.
A very optimistic update indeed however economists continue to point to Brexit and U.S. policies that may push protectionism as two of the major concerns
The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.
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