June 3, 2011 / 3:59 PM / 8 years ago

World's private sector picks up pace in May - PMIs

LONDON (Reuters) - The world’s private sector economy expanded at a slightly faster pace in May, with companies in emerging powers China, Brazil and Russia leading the way, a business survey showed on Friday.

JPMorgan’s Global All-Industry Output Index, which is based on the results of purchasing managers surveys of thousands of companies worldwide, rose to 52.6 in May, up from April’s 21-month low of 51.8.

May was the 22nd month the index has been above the 50 mark that signifies growth.

“Growth of the global economy showed a slight improvement in May, although this mainly reflected a slight bounce in the service sector following March’s sharp easing,” said David Hensley from survey compiler JPMorgan.

“The underlying trend remains consistent with the recovery entering a softer growth phase, especially as manufacturing slowed further.”

The global services PMI also picked up slightly, to 52.5 in May from April’s 51.0, which was also a 21-month low. JPMorgan said the acceleration was mainly the result of stronger growth in China.

“Job creation was sustained for the eleventh month running, but cost inflation failed to show as substantial an easing as that seen at manufacturers,” said Hensley.

Purchasing managers indexes from individual countries released through Friday showed mixed performance. While growth picked up among service sector firms in the U.S., it sagged in the euro zone for the second month in a row.

Reporting by Andy Bruce; Editing by Ruth Pitchford

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