Global All-Industry Output Index – produced by JPMorgan and Markit in association with ISM and IFPSM

www.ism.ws/files/ISMReport/JPMorgan/JPMorganMfg-Svcs080513.pdf

Global economic growth accelerated sharply at the start of
the third quarter. The rate of expansion in output hit a 16-
month high, as manufacturers and service providers benefited
from improved inflows of new business.

The expansion remained uneven by region, however. Stronger
growth was registered in the US* and the UK, while the
eurozone stabilised. This was partly offset by weaker
performances in Asia and a number of emerging markets.

The Global All-Industry Output Index – produced by
JPMorgan and Markit in association with ISM and IFPSM –
posted 54.1 in July, up from 51.2 in June, to extend the current
unbroken sequence of expansion to four years.

Rates of output expansion in the US and the UK were the
fastest for seven months and 16 years respectively. Moreover,
the all-industry PMI output indices for both the US and the
UK were almost ten points higher than the average for
elsewhere in the global economy. Output growth in Japan
eased to a five-month low, while contractions were signalled
for China, India, Brazil and Russia.

Global employment increased for the tenth successive month
in July. Jobs growth was recorded in the US, Germany, the
UK and India. In contrast, payroll numbers were cut in China,
Japan, France, Italy, Spain and Russia. Brazil reported no
change in staffing levels over the month.

Cost inflation accelerated during July, with the rate of increase
hitting a five-month high. The stronger inflation of input prices
was signalled by the service sector, although manufacturers
also saw a pick in the rate of increase in costs. Inflationary
pressure surged higher in the US, while Italy also saw a
marked acceleration.

Global Manufacturing & Services PMI™ Summary

• 50 = no change on previous month.
• Jun Jul +/- Change Summary
• Output 51.2 54.1 + Expanding, faster rate
• New Orders 50.9 53.2 + Expanding, faster rate
• Input Prices 52.4 55.4 + Rising, faster rate
• Employment 51.6 51.0 – Rising, slower rate

News Release MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 11:00am (US EASTERN TIME) 5 August 2013