LONDON (Reuters) - Growth in the world’s private sector economy eased in August as a modest expansion in services was coupled with stagnating demand for manufactured goods, a business survey showed on Thursday.
The Global Total Output index, produced by JPMorgan with research and supply management organizations, fell to 51.1 in August from 51.7, but notched up its 37th month above the 50 mark that divides growth from contraction.
“The global economy remained in a low growth gear in August, with the weak performing manufacturing sector and stagnating world market demand providing the main drags on output growth,” said David Hensley at JPMorgan.
New orders fell for the first time since July 2009 when the world economy was in the middle of its last downturn, the survey showed.
JPMorgan said the euro zone remained weak and that while growth was sustained across the United States it was at a slower pace than in the previous month.
The Global Services Index fell to 52.3 in August from 52.6 in July and a similar survey on Tuesday showed the global manufacturing downturn gathered pace in August, with output and new orders falling at their fastest in over three years.
The pace of growth in the massive U.S. services sector rose in August on the back of a rebound in employment and exports, though a measure of new orders declined, data showed earlier on Thursday.
The euro zone probably slipped back into recession in the current quarter, according to PMIs published on Wednesday that also showed Asia’s services growth remained muted in August as the global economy struggled to get its footing.
The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.
Reporting by Jonathan Cable; Editing by Ruth Pitchford