Global private sector output hits 11-month high

Global private sector output hits 11-month high
Global private sector output rose to its highest level in eleven months in January 2012 as manufacturing growth accelerated, a sign of a rebound in demand, said a report by Markit Economics on Friday.

The JP Morgan Global All Industry Output Index, a gauge of global manufacturing and services activity, rose to its highest level since last February to 54.6 in January 2012.

It stood at 52.7 in December 2011. A reading above 50 signals expansion in private sector output, over the previous month.

The US was the principal driver of global growth acceleration last month, with the nation's private sector output expanding at the fastest clip in ten months in January 2012.

Private sector output in the struggling Eurozone economy expanded for the first time since August 2011 in January 2012, signaling stabilization in economic activity in the region, that is battling a severe debt turmoil.

A pickup in new business was the major factor attributed for the acceleration in global economic activity last month.

New orders rose at the fastest rate in ten months in January 2012, a sign that global demand is picking up despite the lingering debt crises in Europe.

Solid demand growth was reported by the US, UK, Russia and Brazil, while a marginal expansion was seen in China, the report said.

Global staffing levels rose for the fourth straight month. Service sector jobs growth was the strongest in over four years, while manufacturers also reported a further increase in payroll numbers, Markit said.

The latest data adds to optimism that the global economic recovery is picking up.

Dion Global Solutions Ltd

Read more about: economy, euro zone
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