Blackfinch Spring VCT PLC has provided a weekly market update, summarizing global events. In the UK, the Office for National Statistics reported that GDP was unchanged between July and September, indicating a loss of momentum in the economy due to higher inflation and interest rates. Grocery price inflation fell to single digits for the first time in 16 months, and the number of no-fault eviction court proceedings by landlords increased by 38% compared to the previous quarter. UK Finance reported a 7% increase in homeowner mortgages in arrears of at least 2.5% of their outstanding balance.
In North America, the number of initial claims for jobless support in the US fell by 3,000 to 217,000, suggesting strong labor demand despite higher interest rates. The US trade deficit increased by approximately 5% to $61.5 billion in September, with imports rising more than exports.
In Europe, German industrial production declined by 1.4% month-on-month in September, and Eurozone retail sales contracted for the third consecutive month. The Eurozone services Purchasing Managers' Index (PMI) contracted to a 32-month low, and the composite PMI reached its lowest reading in nearly three years.
In Asia, China's economy entered deflationary territory for the second time this year, with consumer prices declining by 0.2%. The price of Brent crude oil declined by 2% to $83.50 per barrel, largely due to China's weak economic demand.
Overall, the market update provides a snapshot of global economic trends and highlights key developments in various regions.