Charting the Global Economy: The Week in Review

(Bloomberg) -- The slow grind to more moderate growth continues in China, Germany’s government is more downbeat about next year’s prospects and the American consumer remains king of an economy that received another piece of bad news this week on the manufacturing front.

Following are some of the top charts that appeared on the Bloomberg terminal and Bloomberg.com this week. The scope of this weekly series, grouped by region, is a graphical depiction of an evolving world economy. Chart selection is based on financial market and national economy relevance, shifts in demographics and geopolitical events.

Asia

With a decline in exports to the U.S. expected to continue as long as tariffs remain, China’s economy is likely to keep struggling as falling factory prices hit company profits and rising consumer inflation pinches spending power.

A chill has come over China’s hot-rolled steel market. The spot price of hot-rolled sheet, a benchmark product used to produce vehicles and appliances, fell to the lowest level since November and is denting profitability at mills.

U.S.

An unexpected dip in September retail sales notwithstanding, the tightening in the U.S. labor market is generating faster wage growth, particularly among those in their prime working years, with minorities enjoying the largest year-over-year pay improvements. That should provide plenty of fuel for consumer spending.

While consumers remain the economy’s bright spot, the news for manufacturers continues to dim. Against a backdrop of weaker global demand, cutbacks in domestic investment and trade policy challenges, a union strike at General Motors Co. caused factory output to skid 0.5% in September.

Europe

German Chancellor Angela Merkel’s government cut its 2020 growth forecast to 1% from 1.5%. Europe’s biggest economy expects the pinch from waning global demand, Brexit and lingering trade disputes to carry over into next year.

From Roscoff in France to Esbjerg in Denmark, as well as across the Irish Sea in Dublin, ports have spent millions of euros to prepare for any upheaval from Britain’s tortuous journey out of the European Union.

Emerging Markets

While concern over a global economic slowdown crushes property prices from London to New York, the eastern European market is proving to be an oasis of growth.

--With assistance from Krystal Chia, Birgit Jennen, Brian Parkin, Veronika Gulyas and William Horobin.

To contact the reporter on this story: Vince Golle in Washington at vgolle@bloomberg.net

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Sophie Caronello

©2019 Bloomberg L.P.