A late PS: Sales of new US homes fell in July for the sixth time this year, to the slowest pace since early 2016. Another sign of slowing growth…
US housing correction rolls on in July via sales of new homes, which fell to the slowest pace since 2016: pic.twitter.com/bcCJUxOrKf
— James Picerno (@jpicerno) August 23, 2022
Afternoon summary
Time to wrap up, after a day of disappointing economic data, and warnings that the UK and Europe faces a grim winter as the energy crisis.
The slump in UK factory activity shows that Britain’s economy remains weak, while there were outright contractions this month in the US, the eurozone, and in Australia and Japan.
Recession fears are on the rise on both sides of the Atlantic, a day after European gas prices closed at record highs, pushing the euro below parity with the US dollar.
PMI is definitely at recession levels now. Atlanta Fed Q3 is currently tracking at 1.7% annualized, update comes tomorrow pic.twitter.com/k179GC7YB9
— MacroMarketsDaily (@macro_daily) August 23, 2022
And with global trade stagnating, JP Morgan predicting the pound could sink to $1.14, and pubs and brewers pleading for help with energy bills, there’s plenty to worry about.
Here’s today’s main stories:
