Chart 114

Italian manufacturing PMI declined sharply to 50.1 in August, thus indicating a further slowing of the Italian economy. Business investments are likely to be restrained amid rising yields, falling equity prices and heightened political uncertainty

Chart 112

As a reminder of what lies ahead for several EM-countries, inflation in Turkey rose to 18% in August with more to come. Producer prices increased 32%; business confidence is indicating recession

Chart 110

Upward trend in German composite PMI continues, but weakness in manufacturing. Export orders lowest in 2 years and inflation pressures building, particularly for services, according to Markit. Consistent with a tight labor market.

Chart 109

It is quite remarkable Germany is now close to having the lowest inflation rate of EUR-big4, despite more than full employment and rising wage costs. For France and Italy it is a sign of persisting structural rigidities, also holding back the potential for growth

Chart 107

Large decline in German manufacturing orders in June – primarily caused by investment goods and from the domestic market and euro area. Seasonality could be a factor, but it is not a very good sign after a weak period.

Chart 106

Annual growth in US manufacturing employment is now close to 300K – the highest since the 1990s. Production is more diverse with food adding jobs (a lot of low-productivity artisan foodshops), which is also a reflect of changing household spending habits