Beyond the gloomy headlines, this global index suggests manufacturing is in good shape

Economic data released this week has provided some good news for the global economy. The Purchasing Manager Indexes (PMI) from around the world show manufacturing is at above long term averages or at multi-year highs.

The data suggests that economic growth will follow. Buoyed by low interest rates, and the prospects of government stimulus, firms are benefiting from a surge in new orders.

 

The Australian PMI report includes comments from manufacturers that suggest current demand is driven by higher commodity prices, infrastructure projects, the continued NBN rollout, and higher defence spending. But it also highlights concerns surrounding energy prices and security. Read more

Lee Smales – The Conversation – 6 Apr 2017