Economic News – Find Out What’s Going on in Your Area

economic news

There are several different sources of economic news you can look at to find out what’s going on in your own area. Some of the main areas that have caught my attention lately are China, the economy in America, and climate change. You can also find out about Bank of America’s hiring trends, as well as Inflation, which is expected to be slowing down more than many economists have expected.

China’s property sector has dragged on growth

The Chinese property sector has been dragging on the economy for the past year. It’s an economic drag that’s likely to continue weighing down growth for years to come.

In a bid to rein in a rising debt burden, Beijing has implemented a string of policies. These include allowing banks to extend maturing loans to developers and cutting mortgage rates. This is part of a larger plan to rebalance the economy away from a construction-intensive model.

A wave of real-estate developer debt defaults also dampened consumer confidence. COVID-19 outbreaks slowed business investment activity.

Soaring borrowing costs and a liquidity crunch have left developers struggling to complete pre-sold projects. Property prices continue to fall in most cities. Some analysts say the housing market boom may have reached its peak. But it’s too early to gauge whether the recovery has a firm footing.

Inflation slowing more than many economists expected

Inflation in the United States has slowed more than most economists expected in October. While headline prices rose less than anticipated, the core inflation remained robust.

The increase was the smallest 12-month gain since December 2021. But consumer prices are still rising at the fastest rate in decades, and some economists expect higher inflation for the next 12 to 18 months.

As a result, Federal Reserve officials are likely to hike interest rates by a half-point this month. They also see significant cooling required to stabilize inflation.

There are two main drivers of inflation: labor costs and commodity prices. Labor costs are driven by the tight labor market and low unemployment. Combined with high wages, these forces create upward pressure on the cost of services.

Wall Street expects earnings contraction of about 3.5% for the fourth quarter

The Federal Reserve’s “engineered” slowdown isn’t yet reflected in corporate earnings. However, it’s a good bet that the next round of monetary policy tightening will have an impact on consumer spending and the economy as a whole. That’s why analysts and investors alike are preparing for what may come in the not so distant future.

In the near future, the country’s largest companies will publicly release quarterly financial reports. Analysts will pepper company management with questions about profits and losses. This will give market watchers a glimpse into the state of the economy. Hopefully, the information can be put to use to buoy the stock market.

As the year draws to a close, investors will have to decide whether the economic downturn is a temporary blip or a full blown recession. The latter is the consensus opinion.

Bank of America is slowing hiring as fewer employees leave

Bank of America has taken a new approach to managing its workforce in the last few years. This was in part due to the specter of an impending recession. During the recession, Bank of America cut a record number of jobs. The bank was able to turn around its financial results by making changes to the way it managed its employees.

As part of its efforts to maintain a stable cost structure, Bank of America has opted to hold off on hiring until mid-year. It’s still planning to hire key positions throughout the rest of the year, but the pace of job growth is expected to slow.

In addition to the hiring freeze, the company also raised the minimum wage it pays to its staff. Compared to a year earlier, bank employees are now earning more money.

Climate change is the biggest long-term challenge for the world’s economies

Climate change is one of the biggest long-term challenges for the global economy. It is a complex and systemic risk that impacts every person, country, and company. But there are ways to protect lives and livelihoods and improve economic conditions. The key is to make low-carbon, resilient growth a reality.

Reducing emissions is critical to averting catastrophic climate change, but it requires major social and economic changes. These must be accelerated if we are to reach the Paris Agreement goal of net zero greenhouse gas (GHG) emissions by mid-century.

To accelerate the transition to a net-zero energy system, governments and businesses must work together. They must also be transparent about their efforts.

There is an increasing coalition of nations committed to reaching net-zero by 2050. The OECD and other international organizations support this goal.