Global business activity expanded last month at the same pace as in July, a survey showed on Thursday, but firms were unable to build up a backlog of work in August as new orders grew more slowly.
JPMorgan’s Global All-Industry Output Index, produced with Markit, held steady at July’s 53.7 last month. It has been above the 50 mark that divides growth from contraction since October 2012.
“Scratching beneath the headline numbers, however, reveals an ongoing disparity between the relatively strong performance of the developed nations whereas growth in the emerging markets is quite weak,” said David Hensley, a director at JPMorgan.
“The trend in key regions such as Asia will need to improve if global growth in 2015 is to exceed its 2014 outcome.”
China’s giant manufacturing sector contracted and exports from South Korea tumbled by the most in six years in August, data showed this week.
A global PMI covering the service industry rose to 54.4 from 54.1. A sister survey on Tuesday showed world factory activity expanded at its weakest pace in just over two years last month.
The global PMIs combine survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.