A Slower Pace of Decline
07 / Jul / 2009
The global economy contracted at a slower pace in June, a report showed yesterday, helped by signs of near stabilisation in the United States' services sector. The Global Total Output index, produced by JP Morgan with research and supply management organisations, rose to 48.1 in June from 44.0 in May, still below the 50.0 mark that divides growth from contraction. The Global Services index rose to 47.4 in June from 43.2 in May, its highest level since last September. Earlier data showed the U.S. service sector contracted at its slowest pace since September, and while still pointing to contraction in the economy the non-manufacturing ISM index was three points from stabilisation. The pace of decline in global employment also eased in June with the employment index rising to 44.1 from 41.6, its highest level in eight months. The global index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.