Despite rising tensions in the Middle East and market concerns over unexpected US trade decisions, global economic activity continued to grow in June, according to the S&P Global Flash Purchasing Managers’ Index (PMI). In the US, growth slowed slightly but remained above 50, indicating continued expansion, with the index dropping to 52.8 from 53.0 in May.
However, price pressures surged, with production costs and final prices rising at the fastest pace since July 2022, when inflation peaked post-pandemic. Meanwhile, the Eurozone experienced slow but stable economic expansion, while major economies like Japan, Australia, and India saw notable acceleration in business growth, signaling a mixed but ongoing global recovery.
Chris Williamson, Chief Economist at S&P Global, noted that the overall picture remains unclear, especially with inflation accelerating again over the past two months, potentially hindering monetary easing in some economies. In Europe, trade dynamics remain tied to unresolved negotiations with the Trump administration, amid anticipation of the end of a 90-day tariff freeze on European exports to the US.
Despite some positive indicators, such as rising factory orders in Germany and renewed confidence in the UK market, concerns persist about potential inflationary pressures following recent geopolitical events.
— news from CNN الاقتصادية