The euro zone has exited a three-year contraction in its manufacturing sector, according to recent survey data, signaling a potential turnaround in economic momentum across the region. At the same time, factory activity in the United States expanded at the fastest pace since 2022, driven by renewed consumer and business demand. These developments highlight a shift in global industrial activity, with both regions showing signs of resilience despite ongoing inflationary pressures and tighter monetary policies.
In the US, weekly jobless claims increased to their highest level since June, suggesting some softening in the labor market. Federal Reserve Chair Jerome Powell noted on Friday that emerging risks to employment could influence future monetary decisions, stating that adjustments to the current policy stance might be necessary. This comment triggered a positive reaction in financial markets, with investors increasing expectations for an interest rate cut during the central bank’s upcoming meeting.
— news from Bloomberg.com
— News Original —
Charting the Global Economy: US, European Manufacturing Expands
Manufacturing in the euro area emerged from a three-year downturn while factories in the US expanded by the most since 2022 as demand picked up, separate surveys showed this week. n nWeekly applications for unemployment insurance in the US rose to the highest level since June. Federal Reserve Chair Jerome Powell on Friday acknowledged rising risks for the labor market that “may warrant adjusting our policy stance,” which fueled a market rally and bets that the central bank will cut interest rates when it meets next month.