Global slowdown fears darken as cost of living bites

The global economy looks increasingly likely to be heading into a serious slowdown, just as the highest inflation in a generation prompts central banks to aggressively reverse the ultra-loose monetary policy adopted during the pandemic to support growth, data showed on Friday.

Business activity in the United States, the world’s largest economy, contracted for the first time in nearly two years this month, activity in the euro zone retreated for the first time in over a year, and growth in Britain was at a 17-month low, purchasing managers’ surveys said on Friday.

In another ominous sign for the global economy, Japan’s government is expected to sharply cut its forecast for domestic growth.

Meanwhile, China’s strict COVID-19 lockdowns and Russia’s invasion of Ukraine have further damaged global supply chains that had not yet recovered from the pandemic.

S&P Global on Friday said its preliminary – or “flash” – US Composite PMI Output Index had tumbled far more than expected to 47.5 this month from a final reading of 52.3 in June. That was the fourth straight monthly drop and was driven by weakness in the services sector, which contracted enough to offset moderate growth in manufacturing.

Read full story

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *