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Guy Wagner and his team in their latest monthly market report “Highlights”.
The weakness in activity is not confined to the manufacturing sector, which is additionally affected by the shortage of various materials and components.
The global economy is showing initial signs of a slowdown, impacted by rising long-term interest rates and a general rise in prices.
The decline in GDP was mainly the result of the divergence between sharply rising imports due to high domestic demand on the one hand, and declining exports due to weakening foreign demand on the other.
In such a situation, the real incomes of households as well as the profit margins of many companies fall, which has a negative impact on private consumption and investment, and thus on economic growth.
Global economic growth remains robust. After a slight weakness in services activities at the beginning of the year due to the sharp increase in coronavirus infections, most economic indicators are improving again.
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