The euro region’s purchasing managers index rose to its highest level since July 2006, signaling accelerating growth in services and manufacturing among the 17 European nations.
The European and German surveys as well as the Japanese report all were powered primarily by growth in manufacturing and exporting, a signal that consumer demand and world trade is beginning to recover from the economic downturn.
At a time when emerging markets have faded as a favored investment sector, resumed growth in the developed countries will draw even more investment interest in the coming months.
Downside risk remains, of course, as rising oil prices and continuing debt problems among developed nations pose threats to the global recovery. Still, advisors should consider moving some assets back into the developed markets in light of these positive reports.