WASHINGTONLONDON, May 23 Reuters Businesses across the globe broadly enjoyed an improved performance this month with activity picking up in the United States and across parts of Asia and Europe, surveys showed on Thursday, giving central banks room to potentially defer cutting interest rates.

Borrowing costs were raised following the COVID19 pandemic to combat rampant inflation but talk has now turned to how soon and by how much they will fall, particularly in countries where voters go to the polls this year.

Elections are currently being held in India, the United States goes to the polls in November, and on Wednesday British Prime Minister Rishi Sunak called a national election for July 4.

The global economy is likely to carry its solid momentum for the rest of the year and into 2025, defying earlier expectations of a slowdown, according to an April Reuters poll of economists who said stronger growth than forecast was more likely than weakness.

U.S. business activity accelerated to the highest level in just over two years in May, suggesting that economic growth picked up halfway through the second quarter.

SP Global said on Thursday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, jumped to 54.4 this month. That was the highest level since April 2022 and followed a final reading of 51.3 in April.

A reading above 50 indicates expansion in the private sector. Economists polled by Reuters had forecast the index…