Federal Reserve Chairman Kevin Warsh made it clear at the annual meeting in Wyoming that he wants to see a stable decline in core inflation. However, the data released this week provided little support for this, Bloomberg reports.
The personal consumption expenditures price index in the U.S., excluding food and energy, rose in July as expected, but the annual rate remained at 3.3%. At the same time, consumer spending has barely increased, indicating some cooling in the economy following strong activity at the beginning of summer.
In the second quarter, corporate profits in the U.S. rose by nearly 10%. The after-tax profit-to-GDP ratio increased from 18.2% to a record 19.4%, reflecting a strong reporting season, rising prices, and stable consumer demand.
The German economy grew faster in the second quarter than previously estimated, and the main business expectations index reached its highest level since before the war with Iran. Meanwhile, inflation accelerated in Spain and France, strengthening arguments for a rate hike next month.
In China, industrial profit growth has slowed for the third consecutive month, reaching the lowest pace this year. Weak domestic demand and the diminishing impact of previously recorded oil price increases are putting additional pressure on companies.
Canada's current account surplus exceeded economists' forecasts by more than double due to a record increase in crude oil and bitumen exports. This provides the country with a certain external trade
