German business activity, particularly in the services sector, experienced its sharpest decline since May 2020, leading to concerns about the country's outlook for the remainder of the year and potential stagflation, as both manufacturing and services sectors are contracting.
Euro zone business activity declined more than expected in August, particularly in Germany, while some inflationary pressures returned, posing a challenge for the European Central Bank's efforts to control inflation without causing a recession.
U.S. business activity in August approached stagnation, with growth at its weakest since February as demand for new business in the service sector contracted.
US stocks may be facing further declines as Thursday's selloff, despite strong earnings from Nvidia, suggests that this year's rally may be "exhausted," according to analysts at Morgan Stanley.
Profits at China's industrial firms fell for a seventh consecutive month in July, declining by 6.7% year-on-year, as weak demand and a faltering post-pandemic recovery continue to squeeze companies in the world's second-largest economy.
The number of job openings in the US fell to 8.8 million at the end of July, indicating a slowing economy, with declines seen in professional and business services, healthcare, and state and local government sectors, while the information industry and transportation saw increases in job openings. Additionally, consumer confidence dipped in August as Americans grew more concerned about rising prices of gas and groceries, and home prices continued to increase in June.
China's factory activity contracted for the fifth consecutive month in August, indicating that the slowdown in the country's economy has not yet reached its lowest point.
The latest Manufacturing ISM Report On Business reveals that economic activity in the manufacturing sector has contracted for the 10th consecutive month in August, following a period of growth, with new orders, employment, backlogs, and raw materials inventories all contracting.
The decline in euro zone business activity accelerated faster than expected last month, with the services industry falling into contraction, raising concerns of a possible recession.
Business activity in Britain's services sector declined in August, the first drop since January, due to higher interest rates dampening consumer and corporate demand, although the decrease was less severe than initially estimated.
U.S. manufactured goods orders experienced a significant 2.1% decline in July, the first drop in four months, due in part to higher interest rates impacting business equipment spending.
Lebanon's private sector experiences a decline in business conditions in August, with the purchasing managers' index falling to a seven-month low, as output and new orders decrease amid the country's ongoing economic crisis.
The U.S. economy experienced modest growth in July and August, driven by pent-up demand for leisure activities, while nonessential retail sales slowed, according to the Federal Reserve's "Beige Book" survey.
China's imports and exports experienced a monthly decline in August, with exports falling by 8.8% and imports falling by 7.3%, indicating ongoing challenges despite some slight improvement.
The US consumer is predicted to experience a decline in personal consumption in early 2024, which could lead to a potential recession and downside for stocks, as high borrowing costs and dwindling Covid-era savings impact household budgets.
There are indications that a severe economic contraction may be approaching in the US, with a significant decline in home sales and rising interest rates, similar to the 2008 financial crisis, according to Bloomberg analyst Mike McGlone.
U.S. consumers have significantly reduced their spending over the past six months and plan to continue doing so during the upcoming holiday season, with the majority cutting back on non-essential items and essential items.
The leading economic indicator dropped 0.4% in August, marking the 17th consecutive month of decline, but there is no indication of a recession in the U.S.
The decline in job openings could have negative implications for the US stock market, as job openings and the S&P 500 have shown a strong correlation since 2001, with job openings currently down 27% from their peak in March 2022.
U.S. business activity remains sluggish in September, with the services sector hovering at its slowest pace since February and new order activity hitting its lowest level of the year, according to a survey by S&P Global, which also indicated that job growth and consumer spending have held steady despite concerns over interest rate hikes and inflation.
