Weekly Market Recap: US Job Openings Plunge, Global Economic Growth Slows, and Inflation Cools in Key Economies 🌍📉
Weekly Market Recap, 6 September’24
As we step into the new week, let’s take a closer look at the key economic developments from around the globe that are shaping market sentiments.
📉 US Job Openings Fall to 3-Year Low
In July 2024, US job openings dropped to 7.673 million, the lowest level since January 2021. This decline of 237,000 job openings surprised markets, which had expected a higher figure of 8.10 million. The most significant declines were seen in sectors like healthcare, state and local government, and transportation. On the flip side, professional and business services saw an uptick, alongside federal government roles. Meanwhile, the number of hires and total separations remained stable, but job quits hit a new low since September 2020.
🏦 Core Inflation Stabilizes in the US
The US core PCE price index, the Federal Reserve’s preferred measure of underlying inflation, rose by 0.2% in July, matching both June’s increase and market expectations. On an annual basis, core PCE prices grew by 2.6%, slightly below the anticipated 2.7%, reinforcing the possibility of future rate cuts by the Fed. Personal income and spending also saw increases, driven by higher wages and expenditures on housing, vehicles, and food.
🏭 US Manufacturing Sector Remains in Contraction
The ISM Manufacturing PMI for August 2024 indicated ongoing challenges in the US manufacturing sector, marking the 21st month of contraction in the last 22 months. Key indicators such as new orders and production continued to decline, with employment also down for the third consecutive month. The rising input prices further complicate the Fed’s inflation management efforts.
📊 US GDP Growth Revised Upwards
In brighter news, the US economy showed resilience with a revision of Q2 2024 GDP growth to 3.0%, up from the initial estimate of 2.8%. This growth was fueled by stronger consumer spending and private investment, though higher imports slightly dampened the overall gains.
🇨🇳 Mixed Signals from China’s Manufacturing Sector
China’s manufacturing sector presented a mixed picture in August 2024. The official NBS Manufacturing PMI showed a contraction for the fourth consecutive month, with steep declines in factory output and new orders. However, the Caixin China General Manufacturing PMI offered some hope, with slight improvements driven by stronger domestic demand, even as foreign demand waned.
🇮🇳 India’s Economic Growth Slows
India’s economic growth slowed to 6.7% in the June quarter, down from 7.8% in the previous quarter. The slowdown is largely attributed to government spending cuts amid the general elections, although the economy remains resilient despite high-interest rates from the Reserve Bank of India.
🇩🇪 Germany’s Inflation Drops to 2021 Levels
In August 2024, Germany’s annual inflation rate fell to 1.9%, its lowest since March 2021. This decline was driven by a reduction in energy prices, though consumer confidence showed mixed signals.
🌍 Global Economic Highlights
- Australia: GDP growth slowed to 0.2% in Q2 2024, marking the weakest expansion in five quarters. The manufacturing sector continued to struggle, while services showed signs of recovery.
- Eurozone: Inflation eased to 2.2% in August, driven by falling energy costs.
- France: Inflation fell to 1.9% in August, the lowest since 2021, while service prices saw an uptick.
- Italy: Inflation dropped to 1.1% in August, driven by accelerated energy deflation.
- Canada: GDP grew by 2.1% in Q2 2024, boosted by government spending and business investment.
🔍 Looking Ahead: Key Economic Events
- September 6th: US ISM Services PMI, Non-Farm Payrolls, Unemployment Rate; Germany Balance of Trade; Canada Unemployment Rate.
- September 7th: Canada Ivey PMI; China Balance of Trade.
- September 9th: China Inflation Rate.
- September 10th: Australia Consumer Confidence; UK Unemployment Rate.
- September 11th: UK Monthly GDP; US Core Inflation Rate.
Stay tuned for next week’s update as we continue to monitor global economic trends! 🌐📊
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