This weekly news update from Blackfinch Group provides a summary of global events for reference and to share with clients. In the UK, the Bank of England increased interest rates to 5.25%, putting pressure on borrowers. House building and services sector growth slowed in July, while car sales continued to rise. UK house prices dropped 3.8% year on year in July. The average two-year fixed residential mortgage rate rose to 6.85% and the average five-year fixed residential mortgage rate rose to 6.37%.

In North America, Fitch downgraded the US Federal Government's credit rating from AAA to AA+. US non-farm payrolls rose by 187,000 in July, below the forecast. Average hourly earnings increased by 0.4% month-on-month and 4.4% annually.

In Europe, Eurozone consumer price index inflation dropped to 5.3% in July. The Eurozone economy returned to expansion in the second quarter, narrowly avoiding a technical recession.

Globally, the price of essential ingredients has risen due to conflicts, political events, and unpredictable weather. New order inflows at manufacturers worldwide declined for the thirteenth successive month in July.

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