The week ahead sees the PMI business surveys provide the first major insights into global economic trends in May, with clues being sought as to not only the depth of the downturn but also the speed with which economies can recover from the COVID-19 pandemic. Other key events include US non-farm payrolls and monetary policy meetings at the ECB, Bank of Canada and RBA.

Provisional PMI data hint that the global downturn may have already peaked back in April, with rates of decline having eased markedly in the US, Eurozone, Japan and UK in May. If lockdowns are lifted further in coming months, as planned, a return to growth looks possible for many economies as we head into the third quarter. With markets showing signs of reduced pessimism on the economic outlook, analysts will therefore be hoping that the final global PMIs will confirm an easing from April's unprecedented rate of economic contraction. China's PMI data will prove especially interesting as a bellwether for other...

Purchasing Managers’ Index™ (PMI™) data are compiled by IHS Markit for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.