Overnight we got a bunch of cyclical data that is helpful in showing where the global economy currently sits across regions and categories, similar to Markit PMIs.
Korea, Sweden, and the Eurozone all released indices of manufacturing and services sector sentiment that are not directly comparable on a like-for-like basis (as is the case with Markit PMIs) but do tend to send similar messages about the state of the global economy. We show them in the chart below, presented as a Z-score (current reading less average, measured in standard deviations) which normalizes them for their volatility and to the same scale.
As shown, economic activity continues to bounce broadly from the extreme lows of Q2, but September readings are still generally well below the pre-COVID norm and are below average. Similar to the US economy, global activity is still bouncing, but is far from pre-COVID levels in our view. This analysis was originally published in our pre-open report — The Morning Lineup — this morning. Click here to start a free trial to Bespoke Institutional and receive our daily Morning Lineup for the next two weeks, featuring more commentary and data on macro markets.