US economy slowed sharply in late 2015 with warning lights flashing for 2016

US economic growth slowed sharply in the final quarter of last year, according to the first official estimate. At least some of the weakness looks temporary, but there are also signs that the underlying pace of expansion is on the wane.

UK economy sustains steady growth in fourth quarter but faces tough 2016

UK economic growth edged higher in the final quarter of last year, according to the initial official estimate of gross domestic product. However, the upturn masks an unbalanced economy and a slowing underlying pace of expansion, with the annual rate of growth slipping to the weakest for almost three years. Survey data also pointed to a further loss of momentum in December.

US flash PMI signals further growth slowdown at start of year

The first survey data of business activity in 2016 indicate an inauspicious start to the year for the US economy.

Financials is fastest-growing area of global economy in December

The final batch of Markit’s detailed global sector PMI^TM data for 2015 showed that finance, food & drink, pharmaceuticals and hi-tech services companies enjoyed the strongest growth at the end of the year. This followed the general pattern shown over 2015 as a whole, where healthcare, financials and technology registered the strongest growth rates. Notably, metals & mining posted the steepest drop in production in more than three years in December.

UK recruitment industry reports further slowing of salary growth in December

Pay pressures in the UK labour market eased at the end of 2015. The KPMG/REC Report on Jobs, published today, signalled that average starting salaries offered to new permanent hires rose at the slowest rate in 26 months in December. Although the rate of pay growth remained above the average seen since data were first available in 1997, the recent trend has been considerably weaker than the elevated pace seen earlier in the year.

Global PMI dips in December to signal weakest quarterly growth for a year

The global economy lost some growth momentum in December, according to survey data which showed rates of expansion slowing in both manufacturing and services. The weak end to 2015 rounded off the worst quarter, albeit by a narrow margin, seen for a year.

Spanish firms see strong growth pre-election

According to the latest Markit PMI data for Spain, manufacturing firms and service providers alike continued to record sharp increases in output in the run up to the general election on December 20^th. However, with the result of the election leaving the make-up of the next government in doubt, there is a chance that a prolonged period of political uncertainty could result in a drop-off in economic growth at the start of 2016.

Global manufacturing subdued by steepest emerging-Asia downturn on record

Global manufacturing growth slowed at the end of 2015, ending the worst year since 2012. European countries led the growth rankings, as emerging Asia suffered its worst downturn in more than ten years of data collection.

Vietnam PMI – 2015 review

At the end of December the General Statistics Office of Vietnam announced that GDP rose 6.7% in 2015, above the target of 6.2% and bringing a positive end to the five-year plan of 2011-2015. The Nikkei Manufacturing PMI, produced by Markit, was also generally positive in 2015, although the latter part of the year saw a slowdown in growth. This note looks at the key themes of 2015 and looks forward to 2016.