Putnam Global GDP Nowcast | July 2017

The Putnam Global GDP Nowcast index is a proprietary GDP-weighted quantitative model that tracks key growth factors across 25 economies. This index and individual country indexes are used as key signals in Putnam’s interest-rate and foreign-exchange strategies.


Growth dipped in June

SHORT-TERM TREND
Global growth dipped in June, but overall showed little change.
3.72%

In a largely stable month, the United States and United Kingdom were relatively weak. Mexico, Korea, and Singapore contributed strongly, while Malaysia and Taiwan contracted.

LONG-TERM CYCLE
This six-year illustration captures GDP gyrations since the financial crisis.

Sept ’10–Dec ’13

Global growth swings dramatically, under pressure from sovereign debt crises and darkening global growth prospects amid fitful recoveries.

Jan ’14–Oct ’16

Global growth settles into a more subdued pattern of modestly disappointing results.

Source: Putnam. Data as of June 30, 2017. We base our Global GDP Nowcast on a tailored methodology that captures daily data releases for the most essential growth characteristics for each of 25 countries — including purchasing managers’ index data, industrial production, retail sales data, labor market metrics, real estate price indexes, sentiment indicators, and numerous other factors. The mix of factors used for each market may change over time as new indicators become available from data sources or if certain factors become more, or less, predictive of economic growth.