Euro zone and Chinese business activity remained strong in May while activity in Japan's massive service sector hit a two-year high. As Sara Hemrajani reports, the latest surveys come alongside a World Bank report that sees improvement in advanced economies - but with risks from new trade restrictions.
A promising year for the global economy. The World Bank is forecasting growth of 2.7 percent in 2017. That's thanks to improving manufacturing, trade, market confidence and commodity prices. But there's a note of caution as well -- the World Bank says the recovery is "fragile", with talk of protectionism raising red flags. For now, the major economies appear to be feeling the positive momentum. One survey shows China's services sector expanded at the fastest pace in four months in May. While activity in Japan's services grew the most in almost two years. SOUNDBITE: Chris Beauchamp, Senior Market Analyst, IG, saying (English): "Japan continues to move forward in the right direction, even if not quite the strength we hoped it would. China, again, worries have receded there. You've seen metals prices recover after some significant worries. But overall, although we won't see another stimulus, I think China's economy seems to be moving along in the right direction for the time being." That upward trend is also being seen in the euro zone. Business activity in the bloc remained at a six-year high in May, with a PMI composite reading of 56.8. SOUNDBITE: Chris Beauchamp, Senior Market Analyst, IG, saying (English): "Euro zone continues to stand out as the strong performer over the last year or so, really the rebound there has been impressive. The ECB should be very happy with what it sees." The World Bank has raised its forecast for the euro zone, predicting growth will hit 1.7 percent this year.