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By Mark DOWDING, CIO at BlueBay Asset Management
A soft Institute for Supply Management (ISM) Manufacturing report led to increased worries related to the global economy in the past week coming on the back of disappointing Purchasing Managers’ Index (PMI) data from the Eurozone the week before. However, in the US itself, it is possible to view this data in the context of a downturn in global manufacturing, and despite a weaker ISM services report too, domestic consumption remains strong and housing investment is picking up in response to easier financial conditions, we think recession fears remain some way off. Indeed, this week’s ISM manufacturing data is consistent with 1.5% GDP growth and numbers below 42 on this index would typically be needed to be seen...
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