Post by account_disabled on Mar 9, 2024 3:43:43 GMT -5
Industrial production indicators in Europe and Asia fall as the consequences of the war in Ukraine and the economic slowdown in China continue to intensify.
The PMI, a macroeconomic index of average purchase prices, reflects a drop in the euro zone in August to 49.6 from the July figure of 49.8 according to S&P Global, which indicates a decrease in demand in a context in which that consumers have to face higher energy prices and more expensive goods and services.
Germany and Italy recorded the Ecuador Mobile Number List worst data in 26 months. In Asia, Taiwan's PMI fell to 42.7, its lowest level since May 2020, while South Korea's fell to 47.6, its worst since July 2020. Japan also recorded lower figures, although remained above the 50 level that separates contraction from expansion.
In the specific case of Ecuador Mobile Number List Taiwan, chip manufacturers are already warning of slowing demand for semiconductors.
The data adds to a highly uncertain global environment with the world's two largest economies moving in different directions (China has eased its monetary policy) and most central banks raising interest rates to fight inflation.
For the euro zone, the chances of a recession are increasing by the day as Russia reduces energy shipments, raising natural gas and electricity prices. Despite this, the European Central Bank is expected to continue increasing interest rates to contain inflation, the highest since the creation of the common currency.
Korean semiconductor shipments also fell for the first time in more than two years last month, down 7.8% from a year earlier, according to official data released Thursday. Chips comprise about 20% of South Korea's export value.
In sum, the boost to Asian exports due to China's reopening after the tough Covid-19 control measures of a few months ago is fading, and is likely to continue to deteriorate as global demand continues to decline.
With high inflation and restrictive monetary policies, consumers are spending less, leading to a recession and prices contracting, but the process will take time and will affect families and businesses dramatically.