Businesses across the globe broadly enjoyed an improved performance this month with activity picking up across parts of Asia and Europe, surveys showed on Thursday, giving central banks room to potentially defer cutting interest rates.
The global economy is likely to carry its solid momentum for the rest of the year and into 2025, defying earlier expectations of a slowdown, according to an April Reuters poll of economists who said stronger growth than forecast was more likely than weakness. Overall prices charged rose at their slowest pace since November and the output prices index dropped to 52.5 from 53.7, potentially opening the door to policy easing from the European Central Bank.“The PMIs for May suggest that the euro zone economy continued to expand in Q2 while price pressures eased but remained high in the services sector,” said Franziska Palmas at Capital Economics.
But in France, the bloc’s second-biggest economy, the private sector unexpectedly shrank this month after expanding in April with the services industry joining manufacturing in reporting a contraction in activity.
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