This weekly news update from Blackfinch Group provides a summary of global events for reference and to share with clients. In the UK, economic growth increased by 0.2% in the second quarter, boosted by a recovery in car manufacturing and strong productivity in June. Business investment also rose by 3.4%, indicating a potential "business investment boom" underway. However, the number of homeowners falling behind on mortgage payments increased by 7% in Q2.
In North America, US consumer prices rose by 3.2% in July, lower than economists' forecast, and core US inflation dipped to 4.7%. Producer prices also rose in July, indicating a potential cause for the uptick in inflation. Initial jobless claims rose to 248k, above economists' forecast.
In Europe, German industrial production fell by 1.5% in June, below consensus. The performance across main industrial groups was uneven. In Asia, China's trade in July showed a decline in imports by 12.4% and exports by 14.5%, raising concerns about the country's economy. China also officially fell into deflation territory with a CPI inflation reading of -0.3% in July.
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