World Growth Bouncing

Employers take over from central banks as drivers of international expansion; it may be time for inflation worries to pick up as well.

Companies from Ford Motor Co. to Panasonic Corp. are providing fresh fuel for the global economy as they begin to bolster employment and investment.

Stepped-up spending plans are helping reverse the surprise slowdown at the start of the year. They also signal that the next stage of international expansion will be stronger than the tepid recovery so far from 2009’s worldwide recession.

“We are getting traction,” said Julian Callow, founder of Catalyst Economics Ltd. in London. “The improvement in labor market is important because it supports income and confidence which in turn support consumption and growth.”

Such acceleration would be welcome news for central bankers long eager to pass the baton for driving growth to the private sector, while also leaving them wary of the implications for inflation amid signs its three-year slide is now over.

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