All articles tagged with #economic contraction
The October 2025 ISM Manufacturing PMI report shows the U.S. manufacturing sector contracting for the eighth consecutive month with a PMI of 48.7%, driven by declines in production, new orders, and employment, amid ongoing economic uncertainty and supply chain disruptions.
The September 2025 ISM Manufacturing PMI indicates the U.S. manufacturing sector contracted for the seventh consecutive month with a PMI of 49.1, showing slight improvement but still reflecting overall economic slowdown, driven by declines in new orders, inventories, and exports amid ongoing tariffs and economic uncertainties.
The August 2025 ISM Manufacturing PMI report shows the U.S. manufacturing sector contracting for the sixth consecutive month with a PMI of 48.7%, indicating a slowdown but slightly less decline than July. Key indicators such as new orders and employment remain in contraction, while prices continue to rise at a slower pace. The overall economy is still expanding, but manufacturing faces ongoing challenges from tariffs, supply chain disruptions, and demand uncertainties.
The August 2025 ISM Manufacturing PMI report shows the U.S. manufacturing sector contracting for the sixth consecutive month with a PMI of 48.7%, indicating a slower decline. Key indicators such as new orders and employment remain in contraction, though some sectors like food and petroleum are expanding. Raw material prices continue to rise, and supply chain disruptions persist, largely due to tariffs and trade uncertainties. Overall, the manufacturing economy is experiencing a mild slowdown amid ongoing challenges.
Germany's economy shrank by 0.3% in Q2 2025, with weaker industrial output and increased imports contributing to the decline, raising concerns about a potential third consecutive year of recession. The government faces pressure to implement bold reforms to boost competitiveness, while other news includes a court blocking the renaming of a Berlin street and calls for Germany to recognize a Palestinian state.
Japan's Q1 GDP contraction was revised to a smaller 0.2% annualized decline from 0.7%, with slight upward revisions in consumption and private investment, amid ongoing US tariff uncertainties impacting exports and economic outlook.
The May 2025 Services PMI® fell to 49.9%, indicating a slight contraction in the U.S. services sector for the first time since June 2024, driven by declines in new orders and inventories, while employment and supplier deliveries showed signs of recovery amid rising prices and ongoing tariff uncertainties.
US manufacturing activity contracted in May with the ISM PMI at 48.5, and imports fell to their lowest since 2009, mainly due to ongoing tariffs and reduced demand, signaling ongoing economic challenges in the sector.
The U.S. manufacturing sector contracted in May for the third consecutive month with a PMI of 48.5%, indicating ongoing economic slowdown, driven by declining new orders, production, employment, and exports, alongside supply chain delays and rising prices influenced by tariffs.
The UK economy unexpectedly contracted by 0.1% in October, marking the second consecutive month of decline, according to the Office for National Statistics. This downturn, attributed to a drop in production output, contrasts with economists' expectations of a 0.1% growth. The British pound fell 0.3% against the US dollar following the news. UK Finance Minister Rachel Reeves acknowledged the disappointing figures but defended the government's economic policies.
Israel's gross domestic product contracted nearly 20% in the fourth quarter of 2023, a larger decline than expected, primarily due to the toll of the country's war against Hamas in Gaza. The economic data revealed significant contractions in private sector consumption and investment, particularly in real estate, as well as disruptions in the labor force due to military mobilization. Despite a surge in public sector consumption and a positive net trade contribution, the GDP contraction highlights the extensive impact of the conflict, with a slow recovery anticipated for 2024.
The euro zone is likely in recession as the downturn in business activity deepened in December, according to PMI surveys. Both Germany and France experienced a decline in activity across services and manufacturing. This would mark two consecutive quarters of economic contraction, meeting the technical definition of a recession. The European Central Bank has trimmed its growth forecasts for 2023 and 2024. Meanwhile, Britain's services sector saw a pick-up in growth, suggesting it may avoid a recession for now. Firms in the euro zone reduced staffing and demand for services fell as consumers faced high borrowing costs.
Germany's economy contracted by 0.1% in the third quarter of 2023, putting the country on the brink of a technical recession. The decline in GDP follows stagnant growth in the first two quarters of the year. Inflation has fallen to a two-year low, but price rises continue to burden consumers, leading to a decrease in consumer spending. German exports and imports also declined. The Bundesbank expects a further dip in growth in the fourth quarter but predicts a return to slight growth in the first quarter of 2024. However, economists are concerned about a recent court ruling that could lead to public sector cuts and negatively impact the economy.
Germany's economy contracted by 0.1% in the third quarter, confirming the initial estimate. Weak economic performance, high energy costs, weak global orders, and higher interest rates have contributed to Germany's sluggish growth. Private consumer spending decreased by 0.3%, while government consumer spending increased by 0.2%. A court ruling blocking the transfer of pandemic funds to green investment has created uncertainty and could further dampen growth. The Bundesbank predicts that the German economy will shrink again in the fourth quarter before showing slight improvement in early 2024.
Japan's economy contracted more than expected in the third quarter, with provisional gross domestic product falling 2.1% compared to a year ago, marking the first decline in four quarters. The weaker GDP print was driven by weaker domestic capital expenditure and flat private consumption, highlighting the challenges for the Bank of Japan as it considers an exit from its ultra-easy monetary policy. The Japanese government's economic package aims to mitigate rising living costs through subsidies and payouts to low-income households.