Blackfinch Spring VCT PLC has released its weekly update, providing a comprehensive overview of the global economic landscape. In the UK, the Office for National Statistics revised the 2022 GDP growth to 4.8%, driven by the services and transport sectors. Additionally, UK house prices saw a 0.8% quarter-on-quarter increase, with annual growth reaching 2.3%. However, mortgage repossession claims rose by 34% year-on-year in the second quarter of 2024. The construction sector also experienced a significant upturn, with activity increasing at the fastest pace in 26 months.
In North America, the number of Americans filing new claims for unemployment support decreased, allaying concerns of an imminent recession. The US trade deficit shrank in June, attributed to a rise in exports and a moderate increase in imports. The US services sector continued to show strong performance, with the PMI survey indicating healthy expansion.
In Europe, Eurozone retail sales declined by 0.3% in June, missing forecasts for a rise. The Composite PMI from S&P Global revealed that the eurozone economy stalled in July, with the PMI Output Index falling to a five-month low of 50.2. However, German industrial production, excluding construction, exceeded expectations, increasing by 1.6% in June.
In Asia, the Bank of Japan's decision to raise interest rates caused market instability, but Governor Shinichi Uchida reassured markets that the central bank would be cautious before further rate hikes. The Reserve Bank of India's Monetary Policy Committee voted to maintain its key benchmark rate at 6.5% for the ninth consecutive time, maintaining a hawkish stance.
These updates from Blackfinch Spring VCT PLC offer valuable insights for informed client conversations, enabling advisors to stay abreast of global economic developments and their potential impact on investment decisions.