AIA March 2024
Will growing global manufacturing lead to higher commodity prices?
Commentary
I want to bring the below chart to your attention again.
As more and more central banks continue to cut rates, we may enter a new cyclical liquidity cycle. This could lead to higher global growth and manufacturing PMIs, stimulating commodity demand and price.
One commodity that has fallen out of favor is oil. However, demand has fully recovered from its pandemic lows and is back on its historic growth path of 1 to 1.5% per year.