Thought for the day

Global Business Confidence Falls Sharply In December


 
Last updated: 3 July 2024
 
The threat of global recession remains evident in the December Sales Managers Survey data. The Business Confidence index fell particularly fast, which is not usually a good sign, "animal spirits" being essential to foster economic activity and growth. In fact three out of four growth related indexes fell, and two out of the group are now in negative territory, below the "no change" 50 mark, reflecting difficult current conditions. Continuing price inflation, the war in Europe, geopolitical uncertainty, and the lingering problems of covid all continue to impact on the three biggest growth drivers of global economic activity (China, the USA and India), albeit in different ways.

Global: Business Confidence Index
Diffusion Index. (50 = 'No Change')
Global Business Confidence Falls Sharply In December

But one Index - that of Price Inflation has fallen to a 26 month low, and an Index reading of only 51.2, contrasting with the very high readings of the past year of high inflation. This very positive news suggests that price inflation is responding to central banks actions in raising interest rates, and is coming back under control . If this trend persists it will be very welcome news. See more data...



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