According to CNBC, the worries about the Global economic failures are starting to fade away. A senior international economist, Alejandra Grindal, says that because many of the manufacturing purchasing managers indexes are finally starting to stabilize for the first time in 10 straight months which may indicate the worst has passed us. Not only this, but the expansion in the manufacturing sector rose for the first time in six months. This is a good sign for the international economy moving forward, as this might indicate that the economy will finally start to get back to a stable state.
In addition to this, the trade tension between the US and China are finally starting to cool off. Which means that there might not be anymore hikes in rates throughout the next quarter. Although this idea is not 100%, it is a good sign for the economy moving forward, and our trade deals that rates will not hike and tension is starting to cool off. It will be interesting to see what happens in the near future if this continues or if the economy will start to fall off again.
Source: https://www.cnbc.com/2019/04/11/signs-of-a-global-economic-recovery-in-the-second-half-are-emerging.html
4 comments:
I agree i think the trade war between the united states and china has had a big impact on the global economy, and while that seems to be coming to an end i believe the global economy will pick up once again. Another topic you touched on is manufacturing has increased in the last 6 months which is very interesting and i'm not sure what effect that will have on the global economy but it will be very interesting to see the impact.
I hope that not only the impact of these trade problems stop, but I also hope that since the disagreements are over people begin to think the economy is perfectly fine as it is. Although, we still have overall slow down issues globally and even domestically. The tension release will help general confidence around the United States but inflation, job and wage growth should continue to be the main focus when it comes to rate hikes.
Jack,
Based off of previous articles highlighting similar indicators as yours, it does indeed seem like the economy is in recovery mode. Although, in my opinion, the economy never really took that big of a hit. All that necessarily happen was a slowdown which was very worrisome to consumers and investors alike. However, in the past, worries of the future often cause the exact problems they are currently preparing for. In all, it is comforting to see the economy is getting back to normal.
I agree that the expansion in the Manufacturing sector can help the economy get back to a stable state by helping us move forward improving efficiency and competitiveness within other markets. Putting more manufacturing polices in place that are pro-growth may be able to fuel the sector and help economic growth even faster. Also, with the trade tensions lowering, this gives us further hope that the economy can become more efficient and stable.
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