The latest PMIs, published today, suggest that global manufacturing growth continues to be quite rapid and add to evidence that the world economy has plenty of momentum.

Data published this week suggest that global economic growth almost certainly picked up a bit in Q2. We expect it to remain fairly rapid for the next year or two, even as China’s economy loses steam.

Preliminary PMIs, which were published by Markit today, suggest that manufacturing growth in advanced economies started Q3 on a strong note.

In our last Global Policy Watch, published in April, we argued that aggregate fiscal policy in advanced economies was likely to be loosened slightly in the coming year or two. Since then, the chances...