Global business gains strength

WASHINGTON – The global private-sector economy continued to grow briskly last month, even if a shade cooler than October, bolstering speculation the world economy will be stronger in 2006 than many had anticipated.

Monthly surveys of executives at some 10 000 manufacturing and service sector firms in about 20 countries, released over the past week, showed business booming again in November. While the pace of growth ebbed a fraction, the so-called purchasing managers indices showed employment growth at the fastest pace in five years.”The PMI continues to highlight a broadening in the base of global growth,” said David Hensley, director of global economics co-ordination at JP Morgan.At a weekend meeting in London of finance chiefs from the Group of Seven rich nations, the International Monetary Fund’s Managing Director Rodrigo Rato said the IMF was already thinking of upgrading its 2006 global growth forecast.As recently as September, the IMF forecast world economic growth of 4,3 per cent this year and next.That was down from 2004’s 5,1 per cent – the fastest in three decades – but still more than half a percentage point above 20-year averages.The G7 communiqué issued on Saturday was less ebullient but said: “Overall global growth remains and should continue to be solid although slowed by high and volatile oil prices.”- Nampa-ReutersWhile the pace of growth ebbed a fraction, the so-called purchasing managers indices showed employment growth at the fastest pace in five years.”The PMI continues to highlight a broadening in the base of global growth,” said David Hensley, director of global economics co-ordination at JP Morgan.At a weekend meeting in London of finance chiefs from the Group of Seven rich nations, the International Monetary Fund’s Managing Director Rodrigo Rato said the IMF was already thinking of upgrading its 2006 global growth forecast.As recently as September, the IMF forecast world economic growth of 4,3 per cent this year and next.That was down from 2004’s 5,1 per cent – the fastest in three decades – but still more than half a percentage point above 20-year averages.The G7 communiqué issued on Saturday was less ebullient but said: “Overall global growth remains and should continue to be solid although slowed by high and volatile oil prices.” – Nampa-Reuters