Is global economy setting new tone?

(Click for video linked to a searchable transcript of this Mad Money segment)

China, Europe and the US all released new economic data on Thursday, some of which was somewhat surprising. What does Cramer make of it?

If you're a bull, these surprises couldn't be better.

China PMI came in better than expected, rising from 50.3 in July from 50.1 in June. Not only did China PMI advance but more important it came in better than expected - consensus estimates were for 49.9.

That's significant. "Anything south of 50 is contraction. Given that we expected contraction the modest expansion is big," Cramer said.

On the news companies most tethered to the global economy rallied. "Caterpillar led the group, along with Cummins," Cramer said.

Next Euro Zone PMIabsolutely wowed Wall Street. This measure of manufacturing activity grew for the first time in two years. Specifically, the purchasing manager's index (PMI) rose to 50.3 in July, up from 48.8 in June and above a flash estimate of 50.1.

The data suggests that the worst, may in fact, be over for Europe.

"And on the news aerospace rallied. "The Street's presumed that European and Asian players have been cutting back on their orders because of weak finances," Cramer said. Perhaps that's not the case.

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Meanwhile other data showed that U.S. manufacturing grew in July at its quickest pace in four months as output and new orders increased and firms took on more workers.

On top of all that, the number of Americans filing new claims for unemployment benefits fell unexpectedly last week, touching a 5-1/2 year low, suggesting a steadily improving labor market.

"When jobless claims come down, spending goes higher," Cramer explained. "So the money circled back into Starbucks, VF Corp and Under Armour. Lower claims also means lower loan losses for the banks; that group advanced too."

All told, the market could be setting up for a major rally.

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If data from China, Europe and the US continues on this upward trajectory, then the global economy could soon percolate, perhaps as never before. In turn stocks all over the world could be off to the races.

Cramer thinks that's the important takeaway here. "The month of August started off just like July finished, with a roar. For me, it's confirmation that stocks that benefit from an improving economy are the stocks that should be bought."

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