Breakfast briefing: The air is going out of the global economy
Global economic indicators show a slowdown in the US economy, with lower-than-expected GDP growth and cooling inflation. Meanwhile, China is planning stimulus measures to address weak domestic demand, and Japan is intervening to support the yen.
Why it matters
These shifts in major economies signal potential volatility in global markets and influence central bank policies worldwide.
Here's our summary of key economic events overnight that affect New Zealand, with news the giant US economy is slowing. It hasn't had three consecutive lackluster quarters in at least a decade, certainly not since the GFC.
US jobless claims fell last week but by less than seasonal factors would have suggested. There are now 1.85 mln people on these benefits, less than last year at this time but only marginally less than two years ago.
US PCE inflation fell in June to 3.7% from 4.0% in May, as analysts had expected. But that is way higher than the Fed used to say it would tolerate. Personal disposable income rose less than personal spending, and for a fifth consecutive month.
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