Better data boosts hopes in global recovery

investment strategies - views for 2004

House view, Schroders

Improving international economic data helped sustain the mood change evident in equity markets over the last few months of 2003. Business surveys are suggesting the global upswing is gathering momentum. The US has seen the greatest improvement, with the Institute for Supply Management index at its highest level for 20 years - consistent with annualised GDP growth of more than 7% and indicating the strength of activity in the third quarter spilled into the fourth. This, combined with increasing corporate profitability and rising employment numbers, has reinforced expectations the economic r...