LONDON - Global economic activity was mixed during the third quarter of 2023, with distinct signs of improvement in the United States and China but continued sluggishness elsewhere.
Preliminary estimates show U.S. real gross domestic product increased at an annualised rate of 4.9% in the three months from July to September up from 2.1% in the three months from April to June. But there were also warning signs that some of the strength may be temporary and not sustained in the coming quarters.
Real final sales accelerated markedly from annualised growth of 1.7% between April and June and a contraction of -0.2% between October and December 2022. The manufacturing purchasing managers index improved for four consecutive months and by September was in the 38th percentile for all months since 2011 up from just the 2nd percentile in May.
But in Japan, the volume of air cargo remains in the doldrums, with freight through Narita International Airport down by 23% compared with a year ago and showing no sign of recovering. Euro zone manufacturers reported business activity declined for the 16th month running in October and the purchasing managers index was stuck in just the 5th percentile for all months since 2007.