Latest PMI data. The latest PMI monthly data indicate that the global economy is growing at a moderate pace, probably a bit over 3%, with very little evidence of a breakout on either the upside or downside. In the last two or three months, growth has weakened ever so slightly, but not sufficiently to force anyone to revise their overall growth forecasts. The OECD countries are probably doing a bit better than the developing countries albeit the OECD lead indicators suggest the outlook for developing countries is slightly better. The gradual fall in Chinese growth rates will have an impact on overall growth rates but it is unlikely that this fall will actually impact growth rates elsewhere. Latin America is not doing well at all with Brazil in a oomplete mess. But it is a mistake to focus too much on potential bad news. There is quite a lot of good news out there, namely the fall in the oil price and continuing monetary stimulus. Most of Asia is benefitting from the oil price as will most of Africa (outside of the oil producers) and also much of Europe. The European situation has improved a bit over the last two or three months helped no doubt in addition by the fall in the euro. Overall it would be a mistake to get too pessimistic about the outlook.