Gross domestic product (GDP) grew at a rate of 2.1% in the second quarter of 2023, driven by consumer spending, while the Federal Reserve is considering raising interest rates again despite a drop in GDP growth; Americans are increasingly turning to credit cards in a high-interest rate environment, leading to rising credit card debt.
The number of Americans applying for jobless benefits fell slightly last week as companies held on to employees in an economy that has withstood rising interest rates, with job openings remaining robust and unemployment benefits being collected by about 1.73 million people.
U.S. consumer spending increased in July, boosting the economy and reducing recession risks, but the pace is likely unsustainable as households dip into their savings and face potential challenges from student debt repayments and higher borrowing costs.
US inflation remains above 3% as the cost of goods and services rose by 0.2% in July, prompting speculation that the Federal Reserve may freeze interest rates to manage inflation without causing a recession.
The Federal Reserve's preferred measure of inflation, the PCE price index, increased in July, suggesting a higher likelihood of further interest rate hikes this year.
Initial jobless claims fell by 4,000 to 228,000 in the week ending August 26, the lowest level since July 29, contrary to economists' estimated rise, indicating a positive trend in the labor market.
Federal Reserve Chair Jerome Powell warns that inflation remains too high and more interest rate hikes could be possible, causing financial stress for consumers, particularly lower-income workers.
The Indian government is set to unveil an interest subvention scheme for urban housing, providing relief in home loans for families living in rented houses, slums, or unauthorized colonies.
Japan's decision to release treated radioactive water from the Fukushima nuclear power plant could potentially lead to a 0.2% decrease in the country's real GDP, primarily due to the impact on inbound tourism from China and the ban imposed on Japanese seafood products by China and Hong Kong.
India's GDP grew at a rate of 7.8% in the April-June period, fueled by a strong services sector and government infrastructure spending.
Katherine Tai, the top trade official in the US, and Sen. Amy Klobuchar are focusing on workers and manufacturing in their trade strategy, unlike previous presidents who pursued bilateral and multilateral deals.
Morgan Stanley's top economist, Seth Carpenter, believes that the US is nearing a dream economic scenario with falling inflation and steady growth, suggesting that the Federal Reserve is close to achieving a soft landing.
In August, U.S. employers announced a significant increase in layoffs, with the warehousing industry leading the way, while technology saw the most layoff announcements for the year.
The account of the monetary policy meeting of the Governing Council of the European Central Bank held in July 2023 reported that members agreed on the need for a further 25 basis point rate hike to bring inflation back to target, although there were concerns about the slowdown in economic activity and risks to growth. There was also discussion on the transmission of monetary policy and the potential impact on the real economy.
U.S. job growth is slowing down but remains steady, with the unemployment rate settling at 3.5% in July and predictions that the August jobs report will show similar results, although concerns remain regarding potential slowdowns and negative growth.
Borrowing to buy land and using unorthodox strategies to generate funds, China Evergrande Group and its founder, Hui Ka Yan, saw enormous success before facing a messy collapse under the weight of debt, revealing the inner workings of a Chinese property giant and the challenges facing the country's property market.
Consumer prices in the eurozone rose 5.3% on average this month compared to last year, with core inflation easing to 5.3%, potentially increasing pressure on the European Central Bank to raise interest rates.
The S&P 500 ended lower and the Nasdaq higher as U.S. inflation data met expectations, signaling a potential pause in monetary tightening by the Federal Reserve, while Salesforce shares climbed following a positive revenue forecast.
Germany's economic model and banks are struggling, with forecasts showing low growth and poor profitability, highlighting issues such as politicized governance, diminished private sector, and outdated funding methods.
The article discusses the increasing occurrence of putsches in Africa and questions whether there will be more in the future and if democracy can be restored; it also highlights the issue of Lebanon's tourism sector benefiting the economy but not benefiting the general population, and the popularity of a new song among the American right.
Orders for high-tech robots in North America have sharply declined due to a slowing economy and concerns about rising interest rates and sagging economic growth, with companies hesitating to invest in automation amidst inflation worries, according to data compiled by the Association for Advancing Automation.
Global markets are ending a bumpy August with some improvement, but uncertainty around inflation, interest rates, China's economic struggles, and geopolitics still loom.
China's largest property developer, Country Garden, is on the brink of default after reporting a huge loss, exacerbating the real estate crisis and posing a risk to the country's fragile economy.
Eurozone inflation remains at 5.3%, leading analysts to speculate that the ECB may consider pausing its interest rate hikes in light of a slowing economy.
Euro zone inflation for August exceeded analysts' expectations, remaining unchanged from the previous month at 5.3%, posing a dilemma for the European Central Bank.
Life-size cutouts of langurs are being used in several parts of New Delhi to scare away rhesus monkeys and prevent them from causing disturbances during the G20 summit.
Despite market concerns of a looming recession, Kevin O'Leary states that the US economy remains strong, attributing low unemployment and the remote-working trend as key factors driving demand for rentals and homes, though he warns of rising mortgage rates to come.
Americans are growing increasingly anxious about the possibility of another government shutdown, with concerns about the impact on the economy and essential programs such as child care and fishing quotas.
China's factory activity contracted for a fifth consecutive month, putting pressure on Beijing to implement more stimulus measures, while evidence of other weakening areas of the economy raises concerns of a renewed slowdown later this year.
The Pakistani stock market experienced significant losses in response to rumors of an interest rate hike, economic uncertainty, and the depreciation of the rupee.
The outlook for the euro area remains uncertain as economic activity has slowed and indicators suggest weakness ahead, but the labor market remains resilient; a restrictive monetary policy is critical for bringing inflation back to the 2% target in a timely manner, and a data-dependent and robust approach to monetary policy is warranted due to the high level of uncertainty.
UBS reports higher than expected profits, job creation in the US slows, and markets rally on weaker economic data and hope for a pause in interest rate hikes. China's factory activity shrinks but at a slower pace, while retail sales increase. There are opportunities for investors in other Asian markets.
China's "shadow banking" sector is facing a crisis as the government struggles to maintain economic growth, with concerns about the solvency of trust companies like Zhongrong International Trust Co.; however, a new analysis suggests that the government's ability to use fiscal stimulus may be more limited than many believe.
The Indian rupee is expected to open higher against the US dollar following a downward revision to US economic growth in the second quarter, but experts suggest the rupee may struggle to maintain its gains.
The ongoing violation of fundamental rights in Pakistan, including freedom of speech and association, has reached a new level as dissenting voices are silenced through unlawful means and individuals are deprived of their liberty without due process.
The relentless surge in pressure on the exchange rate and price level in Pakistan over the past two and a half years can be attributed to serious malfunctions on the balance of payments and fiscal accounts, which have thrown the monetary aggregates far from their projected path to stability. This has led to inflation and exchange rate pressure, and traditional IMF-mandated adjustments alone may not be enough to resolve the situation.
More than 1,000 flights were cancelled in the United States as Hurricane Idalia hit Florida, causing airports to shut down and airlines to suspend operations in multiple cities.
The consistent devaluation of the Pakistani rupee is causing inflation and forcing the central bank to raise interest rates, leading to concerns about the economy and market confidence.
Indus Motor Company plans to launch a locally assembled hybrid electric vehicle (HEV) in Pakistan, despite unfavorable economic conditions, with the aim of reducing imports and achieving macroeconomic goals.
China's manufacturing activity contracted for a fifth consecutive month in August, putting pressure on officials to provide support to boost economic growth amid weak domestic and international demand.
Japan's Prime Minister Fumio Kishida plans to implement measures to aid the fishing industry affected by China's ban on Japanese seafood, including allocating additional funds from the government's budget reserves, after visiting Tokyo's largest fish market.
India's economy grew at its fastest pace in a year in the April-June quarter, driven by services and manufacturing, though economists warn of a slowdown ahead due to factors like rising food prices and slowing global growth.
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 euro reached a 15-year high against the yen due to signs of inflation in Europe, while the dollar weakened ahead of economic data that could indicate a softening economy.
The euro weakened following comments from ECB rate-setter Isabel Schnabel, raising uncertainty about whether interest rates will be raised in September.
Japan's Prime Minister Fumio Kishida is planning to implement measures to support the fishing industry affected by China's ban on Japanese seafood, including additional funds from the government budget reserves, after visiting Tokyo's fish market.
The rapidly forming El Niño conditions in the Pacific Ocean increase the likelihood of a strong episode this winter, which would raise temperatures and reduce gas consumption in the United States.
Indonesia is set to launch its first high-speed train in October, connecting Jakarta to Bandung, with hopes of boosting economic productivity, though concerns persist over rising costs and debt burdens.
Japan's factory output fell more than expected in July, indicating a challenging start to the second half of the year for manufacturers amid concerns about China's growth and the global economy. Output declined 2.0% in July from the previous month, driven by decreased domestic and overseas orders, particularly in the electronic parts and production machinery sectors. However, car production rose 0.6% due to improved supply chain conditions.
The number of millionaires worldwide has increased significantly over the last decade, with total millionaire wealth reaching $208.3 trillion in 2022, driven by factors such as tech revolutions and market booms; North America is home to the largest percentage of millionaires (42%), followed by Europe (27%); however, wealth inequality remains a significant issue, and the number of millionaires is projected to grow to 86 million by 2027.