European Central Bank raised interest rates this week and trimmed growth estimates as President Christine Lagarde signaled a shift that could mean borrowing costs have peaked.
US core inflation came in a bit firmer than expected, keeping open the possibility that the Federal Reserve will hike later this year after an expected pause next week.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
The ECB rate hike was the 10th straight and brought the deposit rate to 4%. The new outlook shows markedly softer annual economic expansion through 2025, while inflation will weaken to average 3.2% in 2024 and then 2.1% in the final year of that outlook.
The European Commission cut its outlook for the euro-area economy, predicting it will be dragged down this year by a contraction in Germany. Output in the 20-nation currency bloc will rise by 0.8% in 2023, compared with an earlier forecast for 1.1% growth, according to updated projections by the European Union’s executive arm. The UK economy shrank at the fastest pace in seven months in July as strikes and wet weather hit activity harder than expected, reviving fears that a recession may be under way.
US
Underlying US inflation ran at a faster-than-expected monthly pace in August, leaving the door open for additional interest-rate hikes from the Federal Reserve. The figures reinforce the financial stress that American families have been dealing with for over a year.
The United Auto Workers began a strike Friday against all three of the legacy Detroit carmakers, an unprecedented move that could launch a costly and protracted showdown over wages and job security. General Motors Co. offered 20% raises over four years,