Global business sentiment remains weak.

S&P Global Flash PMI data for November was mixed in terms of m/m changes, but the broader contractionary trend remains in place. Of the seven countries reported so far, only the U.S. and U.K. are above the contraction line at 50.7 and 50.1, respectively. Activity mostly improved on the services side from weak levels, while manufacturing remained in contraction across the board. When reviewing this data, it is important to remember that it is intended to be read on a month-to-month basis with the contraction line in mind. As a rule of thumb, after three or more months below fifty, we would look for three or more months of steady increases above fifty before marking a meaningful expansion in activity. Between the currently available global production, order, and trade data and this November’s business sentiment, the outlook for real economic activity in the fourth quarter has not improved compared to the third quarter.

Source: Macrobond. 

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