Economic Activity Around the World is Stabilizing
June 22, 2020
Economies across the globe are beginning to stabilize following the coronavirus shutdown. This month’s surveys of purchasing managers showed both manufacturing and service-sector output rebounding following the record-low readings of recent months throughout Europe and much of Asia.
While several nations, such as the U.K. and France, have seen their output rise out of “contraction” territory, growth remains weak and is being held back by demand. Japan’s service-sector readings have turned around, but their manufacturing outlook worsened, remaining well below 50 on the index, indicating contraction.
Though the improvements have buoyed hopes for a strong global GDP rebound over the summer, there are still indications that recovery could be prolonged, and it may be a while before we return to pre-pandemic levels of economic output.