Heading into the second half of 2015, conditions improved in the U.S., among other advanced economies, while growth prospects for most emerging markets remain challenging and have even deteriorated. The most recent Purchasing Managers Index (PMI), labor market and inflation data reveal a reversal of the weakening trend seen in the first quarter. PMIs for the U.S. and other advanced economies continue to bounce above the neutral line of 50 but have slid below 50, into contraction territory, for emerging markets. The fear of deflation in the euro area has eased with a firming of oil prices, a weakening of the euro and a rebound in economic growth. However, most emerging markets are experiencing sluggish growth, and some are also facing inflation issues due to rising food prices and currency depreciation.