Strong Performance of Manufacturing Index (PMI) data on Friday night pushed global rates modestly higher. Strong global PMI data on Friday reinforced market views of further policy tightening ahead for the Federal Reserve, European Central Bank and Bank of England, pushing global rates modestly higher. PMI data showed increasing growth momentum for services sectors across the Euro area, UK and US and deeper growth contractions for the manufacturing sector for the regions noted apart from the US. With the services sector a larger part of the economy, composite indices improved across the board, signalling overall improved growth momentum in April. The data suggest that the UK and Euro area might have skirted recession and raise a question whether the US economy will even get close to recession, despite a range of other indicators giving a clear signal of recessionary forces.

Source: New Zealand Herald April 23, 2023 22:43 UTC