Risk aversion, high unemployment, growth slowdowns, recessions, and geopolitical crises in key global economies are just a few of the factors holding back global growth. Overall, tighter financial conditions are leading to stock market corrections and a loss of confidence.
This week’s labor market reports were almost as bleak as the weather. If anyone was not aware or simply doubted that we have a big problem with a deteriorating productivity picture, then the report for the first quarter of 2016
Global Economy, Competitiveness, Economic Environment, Labor, Money & Finance, GDP
When discussing employment data, it is imperative to remember that manufacturing is more productive than other sectors. In my report, I note that it takes about 5.8 full-time equivalent manufacturing jobs to achieve $1 million in value-added, versus 7.7 for both transportation and services and 16.9 for retail trade.
Global Economy, Economic Environment, Regional Economic Integration, Money & Finance, Currency, Government Finance
The European Central Bank is making another attempt at stability through dramatic measures. Europe's falling prices, currency, punitive rates on bank profits, and convoluted politics all complicate the effects of policymaking. Recent data on industrial production and GDP have been promising, however.
The MAPI Foundation today released its latest U.S. Industrial Outlook, a quarterly analysis of 27 major industries, which found that manufacturing industrial production was unchanged from the third to the fourth quarter of 2015. The analysis indicates that such factors as high inventories, a strong dollar, falling commodity prices, and risk aversion have not dissipated and are the cause of this slow growth.