Global PMI data signals stagflation warning. March surveys reveal a concerning economic slowdown across major economies, with output growth hitting its weakest pace since April 2023, approaching levels last seen during the 2008 financial crisis. Simultaneously, price pressures continue accelerating, creating the unwelcome combination of stagnant growth and rising inflation. Emerging markets show particular weakness, with India and China moderating growth while Russia and Brazil entered contraction. This divergence presents a significant challenge for policymakers, as traditional monetary tools become less effective when growth and inflation move in opposite directions. Markets face heightened uncertainty as investors reassess economic outlooks and earnings potential across sectors.
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