Charting the global economy: U.S. unemployment rate climbs
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The unemployment rate in the United States rose for the first time since the start of the year, inflation in Europe hit a new high and retail activity in China showed signs of stagnation due to of the government’s Covid Zero policy.
Meanwhile, a research group has warned that rising energy bills could cause inflation-adjusted disposable income to fall by double digits in the UK and push millions of people into poverty.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
Employers added a good number of jobs in August and a steady stream of people entering the labor force has pushed up the unemployment rate, suggesting a tight labor market is easing and offers mixed implications for the Reserve federal.
The number of container ships bound for the Californian ports of Los Angeles and Long Beach – a traffic jam that once symbolized the vigor of American consumers during the pandemic – has fallen to the lowest level since the bottleneck began to formed two years ago. A record eight ships were in the official queue on Monday evening.
Eurozone inflation has accelerated to a new all-time high, bolstering the case for the European Central Bank to consider a huge interest rate hike when it meets next week . Consumer prices in the 19-nation currency bloc jumped 9.1% in August from a year ago, driven by energy and food.
Britons are set to suffer the biggest squeeze in living standards for a century, according to a new analysis, unless the next Prime Minister provides tens of billions of pounds in additional support. The Resolution Foundation has warned of a 10% drop in real disposable income over two years as soaring energy bills push inflation up into double digits.
Economic confidence in the eurozone has fallen to its lowest level in a year and a half as inflation hits all-time highs and tight energy supplies push the region closer to a recession. Sentiment deteriorated in manufacturing and services, with energy shortages hurting production and soaring prices dampening demand.
China’s slowing economic growth has sparked a stark contrast in the fortunes of its trading partners across Asia, with northern neighbors suffering while southeastern economies resist overall. The world’s second-largest economy is still facing a drop in consumption and production caused by the lockdowns, compounding the impact on demand from a global semiconductor slowdown.
Retail activity in China stagnated in August, with e-commerce demand particularly weak, satellite data showed, suggesting consumer caution due to the current Covid Zero policy and high unemployment remains a drag. major for the world’s second largest economy.
Global inflation is finally running out of steam, although it should remain far too high for the liking of the world’s central bankers. This does not mean a quick return to the subdued inflation that much of the world enjoyed before the twin shocks of Covid-19 and the war in Ukraine – or an end to monetary tightening soon.
Hungarian central bankers raised the benchmark interest rate by one percentage point to 11.75%, the highest policy rate in the European Union. The Gambia also raised its rate by 100 basis points. Guatemala opted for a 50 basis point hike, while policymakers in the Dominican Republic opted for 25.
Turkey’s economy grew at a faster pace than expected as the highest inflation in 24 years prompted consumers to time purchases in anticipation of the upcoming price hike.
Around this time last year, Chileans were feeling good and the local economy was perhaps hotter than any other on Earth. What shocks many now in a country that has long boasted of having the most stable economy in all of Latin America is the sudden nature of the turn to stagflation. It happens much more quickly and violently here than in the rest of the world.
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