The global economy expanded for a nineteenth straight month* in January, according to the JPMorgan (NYSE:JPM) Global PMI™ (compiled by IHS Markit), although the rate of expansion slowed to an 18-month low amid rising COVID-19 infections.
Both manufacturing and service sectors remained in expansion but saw their rates of growth slow markedly, each recording the smallest monthly improvements since July 2020.
A broad tightening of official measures to restrict the spread of the virus had been reflected via an increase in IHS Markit’s Global COVID-19 Containment Index for a second month in January.
In particular, consumer services activity had been hard hit by the COVID-19 Omicron variant’s disruption. Detailed sector data revealed that the tourism and recreation sector reported the steepest downturn by far. The added impact from the spread of the more infectious Omicron variant had also been disruptions towards both materials and staff, shortages of which were again widely reported by companies – and to an extent far exceeding any time prior to the past few months. The indirect impact on prices is also expected to be continuously felt in the months to come.
Global PMI & Covid-19 Containment
“Disclaimer: The intellectual property rights to these data provided herein are owned by or licensed to Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon.
In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers’ Index™ and PMI™ are either registered trademarks of Markit Economics Limited or licensed to Markit Economics Limited. Markit is a registered trade mark of Markit Group Limited.”
Monthly PMI Bulletin: February 2022