Add this to your list of promising signs for the global economy

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Add this chart to your list of evidence that the global economy is improving.

Courtesy of UBS’ equities team, it shows recent movements in purchasing managers indicies (PMIs) for a variety of major manufacturing nations around the world, remembering that a reading above 50 indicates that activity levels are expanding.

Every nation on the list is seeing activity levels improve right now, a stark contrast to the performance seen in recent years where strength in one nation often accompanied weakness in others, something that could partially be due to currency movements making goods produced in one nation more cost competitive than in other nations.

On this evidence, it suggests that total global economic activity is improving in early 2017.

“What stands out is that all major PMIs are now well above the key 50 level signalling expansion for the first time since 2011,” says UBS. “This is consistent again with our call for solid commodity demand into early 2017.”

The chart presented by UBS mirrors the performance in the latest global manufacturing PMI survey, released by IHS Markit in conjunction with JP Morgan, which revealed global manufacturing activity improved at the equal fastest rate in 34 months in January.

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