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As worldwide factory output shrank amid supply shortages and transport kinks, service economies grew as vaccination campaigns progressed and more people returned to gyms, hotels, restaurants, and stores, The Wall Street Journal reported.
Service-sector strength powered net economic growth in Australia, Japan, and the U.S.
However, Europe’s overall GDP has shrunk in recent weeks, due to severe shortages of parts and materials needed by its factories.
Because of global manufacturing’s crippling shortages, the world’s economic recovery will continue for the rest of this year more slowly than was forecast earlier, the WSJ said.
IHS Markit’s overall U.S. purchasing managers index for October rose to 57.3 in October from 55.0 in September.
Numbers above 50 signal growth; the higher the number, the more robust the expansion.
However, Europe’s PMI slipped from 56.2 last month to 54.3 now, a six-month low.
This month, U.S. service businesses have been hiring at their fastest pace since June, IHS said, while manufacturing stalled.
Economists now expect U.S. GDP grew 3.1 percent in the third quarter, compared to 6.7 percent in the second, according to the WSJ.
Last week, China announced third-quarter growth of 4.9 percent, sharply down from the second quarter’s 7.9 percent.
TREND FORECAST: As winter sets in across the western hemisphere, governments and the media will spread more COVID War fear and hysteria. This, in addition to green pass mandates, will further drive down consumer spending across the business spectrum.