US Manufacturing Hits 18-Month High, China's Growth Could Trigger Deflation And More: Economics Weekly Roundup

As the weekend comes to a close, let’s take a look at the top stories that shaped the week. From the U.S. manufacturing sector hitting an 18-month high to a warning about a potential debt crisis, here’s what you need to know.

US Manufacturing Activity Hits 18-Month High

The U.S. manufacturing sector has seen a significant upturn, with March 2024 marking the highest growth rate since September 2022. This development has been attributed to the strong performance of the SPDR Dow Jones Industrial Average ETF DIA and the SPDR S&P 500 SPY. Analysts had predicted a lower growth rate, making this surge a clear indication of improving conditions. Read the full article here.

China’s March Manufacturing Growth Could Trigger Deflation

China’s manufacturing sector experienced a substantial increase in March 2024. This led to a rally in shares of Chinese companies and metal commodities, potentially causing a deflationary impact on global markets. The Alibaba Gr Holding BABA and the VanEck Gold Miners ETF GDX were among the beneficiaries of this growth.

Experts have warned that this surge could have a deflationary effect on global markets. Read the full article here.

See Also: Wall Street Set To Stumble At Open As Traders Eye Key Data, Fed Chair Powell’s Speech: Analyst Finds 2 Reasons To Stay Optimistic In April

US Labor Market Heats Up In March

The U.S. labor market experienced a significant boost in March 2024, with payrolls growing by 303,000. This marks the highest increase in 10 months and has dampened hopes for a rate cut in June. Companies like AstraZeneca AZN and Adobe ADBE were among those that contributed to this growth. Read the full article here.

Mohamed El-Erian Criticizes ‘Overly Data Dependent’ Federal Reserve

Mohamed El-Erian, the chief economic adviser at Allianz, has criticized the U.S. Federal Reserve’s data-dependent strategy. He argues that this approach has caused the Fed to lose sight of its broader strategy. This critique comes at a time when the Fed’s data-dependent approach is under scrutiny. El-Erian suggests that the Fed’s focus on data has led it to become a play-by-play commentator, deviating from its original strategy. Read the full article here.

‘Serious Debate’ Needed To Avert 2025 US Debt Crisis

Wharton professor Joao Gomes has raised concerns about the rapid growth of U.S. debt. He warns that without immediate action from Congress, the U.S. could face a debt crisis by 2025. Gomes emphasizes the need for a serious debate to address this issue and prevent a potential crisis. His warning comes at a time when the U.S. debt is growing at an alarming rate, raising questions about the country’s financial stability. Read the full article here.

Read Next: Wall Street Set To Stumble At Open As Traders Eye Key Data, Fed Chair Powell’s Speech: Analyst Finds 2 Reasons To Stay Optimistic In April

Wall Street illustration created using artificial intelligence via MidJourney.