US sails on as global economy sinks

The US economy still appears to be sailing on serenely while the rest of the world economy sinks like a stone. The latest survey data for January show an apparent capitulation in both China and the euro-zone, with the manufacturing PMIs rapidly falling toward recessionary levels. In contrast, in the US the ISM and Markit PMIs both strengthened slightly last month and remain at levels usually consistent with solid manufacturing output growth.