Income Strategy Third Quarter Review
Since the financial crisis, while the global economic activity showed signs of strengthening, the recovery had been highly uneven. However, over the past twelve months, we have seen the global manufacturing index (generally a good indicator of economic activity expectations globally) among the major markets strengthen substantially to cyclical highs. What makes this recovery stronger is its synchronized nature across the major markets. Out of the major countries we track, only three (Hong Kong, Korea and South Africa) are in contraction compared to fourteen just two years back. This broad based pick up gives us more conviction in the strength of the recovery.