Published Date : Sep 02, 2015
According to latest data, the manufacturing industry in China has further contracted while the euro zone and the U.S. growth eased in August. Keeping the recent developments of the world economy in view, the International Monetary Fund has lowered its forecast for world growth this year. Last month witnessed turbulence in Chinese economy affecting the stocks and the commodity prices on major markets. The investors are wondering if the Federal Reserve would increase the interest rate in September. Economists have pointed out that the interest rate hike depends on the stability of the global economy which is presently struggling.
The Global Manufacturing Purchasing Managers’ Index, produced by JP Morgan and Markit, has shown that in August, the global factory activity grew at its weakest rate since July 2013, dropping to 50.7 from 51.0 in July. The global PMI indicator compiles survey data from countries such as the U.S., Germany, Britain, Russia, China, France, and Japan. The survey points out the lacklustre performance of the global manufacturing sector. The IMF has stated that the global economic growth is expected to be weaker than estimated earlier owing to slow recovery in developed economies and slowdown in developing countries.