Global economy chart: Pessimism on China’s economy grows, eurozone sends out distress signals

On the other side of the Atlantic, the Unemployment rate in the UK The economy slumped and wage growth cooled, while euro area productivity fell for a sixth consecutive quarter and employment growth slowed. Meanwhile, foreign direct investment in the euro area fell 1.8% in 2017. Porcelain plunged due to investor concerns about the economy.

Below are some of the charts that appeared on Bloomberg this week on the latest developments in the global economymarkets and geopolitics:

US

New data on retail spending and jobless benefits eased some of the concerns about the U.S. economy, which in some quarters remains constrained by high interest rates. Retail sales rose in July to their highest level since early 2023 in a broad-based advance, and Walmart Inc.’s firmer sales outlook, a barometer of growth, also indicated shoppers are becoming more selective but still spending.

Bloomberg

Core U.S. inflation fell for a fourth straight month in July, keeping the Federal Reserve on track to cut interest rates next month. While prices fell last month for clothing, new and used cars and airline tickets, housing was the most disappointing part of the report, which economists and policymakers had hoped would moderate and help bring inflation closer to the Fed’s target.

Bloomberg

While young, college-educated women continue to look for work even as the number of job openings shrinks, many of their male peers are choosing to take a break. The share of male college graduates participating in the labor force has declined over the past year, and 1 in 5 under age 25 is neither employed nor actively looking for work, according to the latest 12-month average from a Bloomberg News analysis of government data.Europe

Bloomberg

UK unemployment unexpectedly fell after businesses hired at their strongest pace since November, a sign of underlying strength in the economy that complicates the Bank of England’s shift to lower interest rates. Separate data showed regular wage growth cooled to 5.4%, the weakest year-on-year pay rise since the summer of 2022.

Bloomberg

Eurozone companies slowed hiring in the second quarter amid growing signs of economic weakness. The eurozone economy has been sending out distress signals recently: consumers are unwilling to spend despite huge wage increases, private sector activity is stalling and confidence in its largest member, Germany, is plummeting.

Bloomberg

Eurozone productivity barely improved in the second quarter and again missed the European Central Bank’s expectations, dealing a blow to its efforts to bring inflation back to 2%.

Bloomberg

The ECB is now likely to cut its deposit rate once a quarter until the end of next year, a timetable that will see its easing cycle end earlier than previously anticipated, economists say.

Asia

Bloomberg

Foreign investors pulled a record amount of money out of China last quarter, likely reflecting deep pessimism about the world’s second-largest economy. China’s direct investment liabilities in its balance of payments fell by nearly $15 billion in the April-June period, marking only the second time this figure has turned negative.

Bloomberg

Wage growth in Australia remained elevated in the second quarter, reflecting persistent inflationary pressures in the economy and supporting the Reserve Bank’s view that interest rate cuts are still some way off.

Emerging markets

Bloomberg

In the eight months since President Javier Milei took office, prices have soared more than 100%, consumer spending has plummeted and unemployment has risen, while Argentines have been subjected to the most brutal austerity shock in recent history. Yet something unexpected has happened under Milei: for all the misery that remains, he remains as popular as when he came to power promising to use a chainsaw to tear apart the state.

Bloomberg

Chinese mining and refining companies are pushing for a surge in lithium production in Africa, ignoring concerns about a supply glut to secure future supplies of the critical battery metal. The continent is projected to account for nearly 11% of global supply this year, up from nearly zero at the start of the decade, according to S&P Global Commodity Insights. That share is projected to rise to more than 14% by 2028.

World

Bloomberg

New Zealand’s central bank cut interest rates, starting an easing cycle much earlier than previously indicated, amid a slowing economy and decelerating inflation. Namibia and the Philippines also cut borrowing costs. Zambia’s central bank kept its key interest rate on hold after six consecutive hikes to support its drought-hit economy. Norway and Uruguay also kept their rates unchanged.