News 24-7 Live

U.S., Global Economy See Pickup as Services Revive and Factories Ramp Up

US Dollar banknotes are seen in this photo illustration

US Dollar banknotes are seen in this photo illustration

After a big contraction in 2020, the global economy is forecast to rebound strongly this year as vaccination programs allow more parts of the services economy to reopen fully. There were already signs of that rebound in the U.S. and China during the early months of the year, but surveys of purchasing managers released Friday indicate that Europe is also starting to participate in the recovery.

Threats to the recovery remain, not least the possibility that new variants of the Covid-19 virus will prove more resistant to vaccinations and more easily transmitted. Restrictions on activity remain in many parts of the world, and India Thursday reported the world’s biggest ever single-day jump in new infections.

Data firm IHS Markit said its U.S. services index jumped to 63.1, up from 60.4 in March — the highest reading since data collection began in 2009, signaling the swiftest pace of expansion in at least 11 years. Services companies reported surging growth in new business, buoyed by stronger client demand and relaxing of restrictions.

U.S. manufacturers reported an upswing in April activity despite struggles to source raw materials, which drove up backlogs, according to surveys carried out by IHS Markit. The purchasing managers index for the U.S. factory sector climbed to 60.6 so far this month, up from 59.1 in March.

News Source: hellenichsipping

Exit mobile version