Charting the Global Economy: Labor Market in U.S. Charges Ahead
(Bloomberg) -- The U.S. labor market is powering forward while the services economy strengthens, factory orders in Germany are firming and inflationary pressures continue to build in emerging markets that include India and Brazil.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
The labor market charged ahead in July with the biggest increase in employment in nearly a year and the jobless rate fell more than forecast, highlighting optimism about demand even as coronavirus concerns resurface.
Service providers expanded in July at the fastest pace in records dating back to 1997 as measures of business activity, new orders and employment all improved.
The median projection by Federal Reserve rate setters of 7% economic growth in 2021 is slipping out of reach, Bloomberg Economics’ updated forecasts suggest. The main factor behind the downward revision to 6.3% is an inability of the supply side of the economy to support faster inflation-adjusted growth, not the delta variant.
The Bank of England said inflation will peak higher than expected around 4% and warned it will need to start some “modest tightening” of monetary policy over the next three years to keep price growth under control.
German factory orders rose in June, bolstering the recovery in Europe’s largest economy as an easing of pandemic restrictions supported business activity across sectors.
A sweeping new vision for the world’s second-largest economy is emerging from the crackdown on big tech -- one where the interests of investors take a distant third place to ensuring social stability and China’s national security.
Tokyo consumer prices unexpectedly rose for the first time in a year, another sign of a recovering inflation pulse in Japan, though the pace of gains was far from the levels fueling fears elsewhere in the world.
Brazil’s central bank delivered its most aggressive interest rate increase in nearly two decades and promised to quickly reintroduce a restrictive monetary policy to tame above-target inflation.
India’s central bank kept interest rates unchanged at a record low to support the economy, even as a split appeared among policy makers on continuing with the lower-for-longer stance. The 5-1 decision came against a backdrop of inflation that’s breached the Reserve Bank of India’s upper tolerance limit of 6% in the past two months, a trend attributed mainly to supply side disruptions caused by the pandemic.
Member nations approved the biggest resource injection in the International Monetary Fund’s history, with $650 billion meant to help countries deal with mounting debt and the fallout from the Covid-19 pandemic.
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