May saw the global economic upturn continue, partly reflecting a boost from clients front-loading demand to mitigate expected price rises and supply disruptions. The J.P.Morgan Global Composite PMI Output Index – produced by J.P.Morgan and S&P Global in association with ISM and IFPSM – posted 51.8 in May, unchanged from April and above March's 11-month low of 51.0. The headline index has signalled expansion in each of the past 40 months. National PMI data signalled expansions of output in the US, mainland China, Japan and India. Europe fared worse on average) with both the euro area and the UK registering contractions.

The manufacturing sector outperformed its services counterpart for the second successive month in May. The Global Manufacturing PMI Output Index edged up to a near-five year high of 53.5, as production volumes rose across the consumer, intermediate and investment goods industries. The investment goods category registered the strongest growth of the six sub-sectors covering both manufacturing and services for the second month in a row. The Global Services PMI Business Activity Index also nudged up by 0.1 points in May, posting a three-month high of 51.3.

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