Global economy picks up steam, inflation concerns linger

The global economy is showing signs of improvement, expanding for the fifth month in a row. This growth is driven by both manufacturing and service sectors, with services leading the way at an eight-month high. This positive trend is even stronger in emerging economies, experiencing their fastest growth since May 2023, as per PMI report on Thursday.

However, there’s a catch: inflation is rising. The price of goods and services is increasing, particularly in the service sector. While manufacturing prices are also showing signs of a rebound, the overall picture suggests inflationary pressures might remain high.

Despite this concern, the global PMI (Purchasing Managers’ Index) reached a nine-month high in March, indicating a growth pace consistent with an annualized quarterly GDP of 2.6%. This data, based on surveys from businesses in over 40 countries, provides valuable insights for financial professionals looking to understand future economic trends.