Global Economy Shows Signs of Sustained Growth, But Inflation Concerns Remain

The global economy is picking up steam according to a report by S&P Global. The latest Purchasing Managers Index (PMI) data from S&P Global reached 52.3, a nine-month high, indicating a broad-based recovery across sectors and regions.

"This suggests a sustained and positive outlook for the global economy," said Chris Williamson, S&P Global's chief business economist, in the report.

Emerging markets are leading the global economic charge. India, in particular, is experiencing its strongest growth since July 2010, marking its 15th consecutive month of expansion. Brazil is also showing robust growth, indicating a positive trend for the developing world.

Developed markets are experiencing a more mixed picture. While the US and UK are seeing growth in manufacturing output, the eurozone's expansion is more modest. Notably, the US is leading the way with a PMI of 51.9, fueled by a strong upturn in new orders. This suggests a well-established and broad-based economic expansion in the US, with positive forward-looking indicators pointing to continued growth. However, Canada stands out as an outlier, experiencing contraction in March.

However, inflation remains a concern, the reports states. Average prices of goods and services increased for the second month in a row. The steepest rise in prices is in the consumer goods sector, hitting a 16-month high in March. Strong job growth, driven by the services sector, is contributing to higher demand, which in turn puts pressure on prices.