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Germany’s manufacturing meltdown is pulling Europe’s largest economy closer to a recession, the U.S. housing market is springing to life and growth in South Africa has been stuck in low gear for the longest period since World War II, data released this week showed.
Following are some of the top charts that appeared on the Bloomberg terminal and Bloomberg.com this week. The scope of this weekly series, grouped by region, is a graphical depiction of an evolving world economy. Chart selection is based on financial market and national economy relevance, shifts in demographics and geopolitical events.
Business expectations in Germany declined in September to a decade-low, according to the Ifo Institute. The news is another blow to Germany after a report Monday showed factory activity is shrinking at the fastest pace since the depths of the financial crisis 10 years ago.
New-home sales in the U.S. rebounded at a faster pace than forecast in August, thanks to mortgage rates that are hovering just above the lowest level in nearly three years, a government report showed Thursday. Purchases were boosted by demand for higher-end properties, capping the strongest three months of the expansion and indicating residential construction may finally start adding to economic growth for the first time since 2017.
Americans who relocate are seeing greener pastures. Newly released Census Bureau data show that people residing outside their birth state enjoyed median annual incomes that were $5,700 more than those who still reside where they were born. Movers made up more than 21% of Americans whose incomes exceed $75,000.
The extent of Beijing’s strategy of using economics in the Great Power Competition was underscored last week in the Pacific Islands, with China continuing to open up the spigots of financial aid and lending. The Solomon Islands have now recognized China, ending formal relations with Taiwan that began in 1983, and Kiribati has followed suit. Undercut by China, Taiwan now has just 15 global diplomatic partners.
Africa’s most-industrialized economy hasn’t expanded at more than 2% since 2013, adding to pressure on the South African government to implement reforms. The economy entered the 70th month of a weakening cycle in September, according to the Reserve Bank’s Quarterly Bulletin released Wednesday.
Peru is one of the world’s most open economies, with trade agreements in place to cover 90% of its exports. The strategy is serving the South American nation well, helping boost sales of agricultural products and manufactured goods. It’s currently seeking to build on that success by seeking trade agreements with India, Turkey and El Salvador.
--With assistance from Yuko Takeo, Sophie Caronello, Alex Tanzi, Hannah Dormido, John Quigley, Prinesha Naidoo and Jason Scott.
To contact the reporters on this story: Vince Golle in Washington at email@example.com;Zoe Schneeweiss in London at firstname.lastname@example.org
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