Global Economic Data Reflects Divergent Market Performance
Industrial, labor, and monetary indicators shape the economic landscape in the UK, the US, and Australia.
Content
United Kingdom
UK Industrial Output Posts Stronger-Than-Expected Growth in June
The UK’s Office for National Statistics released its June industrial and manufacturing production data on Thursday,
showing positive figures that exceeded market expectations.
Industrial production rose 0.7% month-on-month, surpassing analysts’ forecasts of around 0.4% growth,
compared with a sharp 0.9% contraction in May.
Meanwhile, manufacturing output grew 0.5%, beating the forecast of 0.4%, after shrinking 1% the previous month.
These indicators hold significant weight as a key measure of the UK’s economic health.
Growth in industrial and manufacturing output signals improving economic activity and rising demand,
while these sectors remain highly sensitive to business cycle fluctuations and directly influenced by employment and profit levels.
Mary
Mary Daly Rules Out Large Rate Cut in September
Mary Daly, President of the Federal Reserve Bank of San Francisco,
said a large interest rate cut at next month’s Fed meeting “does not seem warranted” under current conditions,
stressing that monetary policy decisions must remain data-dependent.
In remarks on Thursday, Daly noted that the U.S. economy continues to display resilience despite the effects of earlier monetary tightening.
She acknowledged that inflation is gradually easing but said the Fed needs more evidence of sustained declines before moving toward a substantial rate cut.
Her comments come as some market participants are betting on a cut of half a percentage point or more in September,
buoyed by recent softer inflation data and some weaker economic indicators.
However, Daly’s stance suggests policymakers may opt for a smaller reduction or wait until the economic picture becomes clearer.
Australia
Australian Employment Growth Falls Short of Expectations in July
The Australian Bureau of Statistics released its July labor market report on Thursday,
showing mixed results compared with market forecasts.
The economy added about 24,500 new jobs, slightly below the expected 25,300 gain.
Additionally, the previous May reading was revised to show a loss of around 1,000 jobs instead of the 2,000 initially reported.
On the other hand, the unemployment rate matched analysts’ expectations,
holding at 4.2% in July, down from 4.3% in June.
Global Economic Data Reflects Divergent Market Performance