Charting the Global Economy: Export gloom deepens, Euro area activity retrenches
The contraction in euro area business activity deepened this month, most notably in Germany where the decline was the steepest since the pandemic brought the economy to a screeching halt in May 2020.
France reported a third monthly drop in output, while the rest of the region contracted more moderately, according to a survey of purchasing managers. Sweden’s economic prospects dimmed, while a decline in UK retail sales underscored greater consumer caution.
In Turkey, central bankers, including newly appointed officials led by Governor Hafize Gaye Erkan, surprised markets with the steepest interest-rate increase since 2018.
The move sparked a rally in Turkish lira and banking shares.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
Europe
The contraction of private-sector activity in the euro area intensified, leading investors to bet that the European Central Bank will pause its campaign of interest-rate hikes next month. Services in August ceased being a bright spot and followed the industrial sector into a downturn in the region’s top two economies.
Sweden’s government shrugged off the potential for a contraction next year, while projecting meager growth for the economy as consumers remain under pressure from higher costs.
UK retail sales fell more than expected in July after a spell of cool and rainy weather kept people out of shops at a moment consumers are becoming more cautious with spending.
Record pay raises and the slide in property prices caused the biggest improvement in UK housing affordability in more than a decade, a glimmer of hope for young buyers who have been priced out by stretched valuations.
US
US mortgage applications for home purchases
