UBS’s Chart of the day offers some optimism as we head into the weekend.
Here’s UBS’s Andrew Cates:
Yesterday’s flash PMI surveys from the US, Eurozone and China offered some good news about the outlook for the world economy. The headlines from all three surveys strengthened in August and to levels that surpassed consensus forecasts. Forward looking elements concerning manufacturing new orders were particularly upbeat (see chart below) The re-stocking of raw materials and the destocking of finished goods which was evident in the details of all of these surveys also bodes very well for the global growth outlook in the period ahead. As we have stressed before, a synchronised pick up in global growth has been a rare phenomenon in recent years. That this is seemingly occurring according to these important leading indicators in the US, Europe and China suggests – to this economist – that there are upside risks to the global growth outlook in the period ahead.
Business Insider’s Joe Weisenthal floated this idea last weekend.
This is exciting stuff.