Global economy experiencing an upturn

Global economy experiencing an upturn

The recent economic improvement in the US is part of a broader global trend, with confidence in Europe, China and emerging markets all improving as well, says Principal Global Investors.

Deflation pressures have begun to ease and trade-weighted dollar prices have passed their peak, Principal Global Investors chief global economist Bob Baur said, and with oil prices passing their low point, some of the challenges facing global markets are set to recede.

“Real growth is still slow, but nominal growth is picking up as deflation fades, and it is nominal growth that brings profits,” Mr Baur added.

Mr Baur commented that the improving US job market was supporting consumer confidence in the US, with consumers now “the most upbeat since August 2007”.

“Confidence rose the most at the lower end of the income distribution; for households with income under $15,000, optimism is the highest in 15 years,” he noted.

“More jobs, rising wages, and improving enthusiasm suggest consumer spending could stay strong and resilient.”

Outside of the US, Mr Baur said economic data is looking equally positive, with China’s economy stabilising and household spending driving growth across the Eurozone.

“Eurozone business surveys have held steady since the UK vote [to leave the European Union], but the latest manufacturing reading is up nicely in September. Consumer confidence is rising in France, Germany and Italy,” he said.

Read more:

Investor pessimism misguided: Robeco

Conditions ‘ripe’ for activist investing

Link Group invests in Moneysoft 

Indian markets looking ‘very attractive’

Cyclical industries set to suffer: Perpetual



Global economy experiencing an upturn
investordaily image
ID logo
promoted stories


investordaily image

Fortnum hires former Centric Wealth CEO

Staff Reporter

Deborah Ralston

SMSF Association names new chair

Katarina Taurian

Curtis Cifuentes

Avenir Capital hires investment director

Staff Reporter


Maurizio Canton

Striking a balance between security and innovation

Maurizio Canton

Greg Kuhnert

Backing China in the Year of the Dog

Greg Kuhert

investordaily image

The benefits of good data governance

Steve Singer