Artificial intelligence continues to reshape the global economy, with countries leading AI investment enjoying stronger economic growth than their peers. Today’s weekly market commentary illustrates how the U.S. and other AI-focused economies continue to outperform, highlighting why innovation and technology remain important long-term themes for investors.
The enclosed chart tracks composite Purchasing Managers’ Indexes (PMIs) for three major regions—the United States, China & Japan, and the Eurozone—from late 2024 through June 2026. The United States is represented by the blue line, China & Japan are represented by the orange line, and the Eurozone is represented by the dashed purple line. A PMI reading above 50 indicates economic expansion, while a reading below 50 signals contraction.
As can be seen from the data, the United States has been the strongest and most consistent performer, remaining comfortably above the expansion threshold of 50 throughout the measured time period. Although there were brief periods of moderation, economic activity quickly rebounded and finished June 2026 in solid expansion territory. The chart, and the piece, suggests that AI-related capital spending has helped support this sustained economic momentum.
China and Japan continue to expand during the measured time frame, but at a more moderate pace. The orange line remained above 50 for most of the period, and economic activity has been positive but less robust than in the U.S. Despite some month-to-month volatility, the region(s) maintained steady expansion into June 2026.
And then finally, the chart shows the Eurozone has experienced a meaningful deterioration. Unlike the U.S. and Asia, the Eurozone fell sharply below the 50 mark during 2026. Again, this indicated that business activity shifted from expansion into contraction. While there are early signs of stabilization near the end of the period, the Eurozone remains well below the other two regions.
Ultimately, in terms of what this means for investors, the piece explains, “looking ahead, some economic performance convergence may occur later this year, once supply chains begin to normalize following what we anticipate will eventually be a renegotiated U.S.-Iran ceasefire. This should benefit trade-sensitive Europe most, but the AI-related gap in performance still is likely to remain wide by historical standards, propelling the U.S. and certain economies in northern Asia, including South Korea and Taiwan.” – WFII Chart of the Week 07/28/2026
We would ask that you review the attached piece at your convenience and please let us know if you have any questions or if you would like to discuss it further. And as we always end this correspondence, please remember that regardless of current momentum and regardless of the key takeaways in this weekly perspective, we will continue to monitor and manage with a thoughtful approach based on your specific long-term objectives.
