Solid growth so far, but the direction of travel is down
Growth in the US and other mature markets remains resilient, as demonstrated by a hefty rebound in leading Services business surveys: the Flash PMIs for the Services sectors ranged from 52+ to 56+ in the US, Eurozone, UK, Australia and Japan. As a reminder, a reading above 50 indicates a likely future expansion of the aggregated Services sector over the coming month.
The strength of Services consumption was equally highlighted in the earnings guidance given notably by airline companies in the S&P 500, with this summer’s travel bookings flagged as very robust.
Outside of Travel & Leisure and Services more generally, growth is clearly slowing. Most mature markets exhibited...