Economic news is a broad term that encompasses a range of topics and reports. It usually involves analyzing how the economy is progressing and what might be in store for the future. Some of the most common economic news items include inflation, unemployment, the Federal Reserve, and other issues.
Inflation slowing more than many economists expected
The Fed is likely to raise short-term interest rates by half a point on Wednesday. But the debate will shift to how long the interest rate increases should last.
Last month’s Consumer Price Index (CPI) shows inflation slowing more than some economists expected. It was the smallest 12-month gain since December 2021. While there’s still some uncertainty about the cause, a recent poll of experts suggests that a number of factors are affecting the economy.
High energy costs are a primary driver of inflation. The cost of gasoline has surged more than 75 percent in the last year, and the fallout from the Ukraine war has contributed to the surge.
Food prices have also risen significantly, and the price of eggs is up almost 50 percent. Despite this, some categories saw smaller increases in November.
Two shootings at a mushroom farm and trucking firm near San Francisco
Two shootings in the San Francisco bay area claimed the lives of seven folks, and the name of the guy who did the deed. The incident is just the latest in a string of violence in the Bay area that has lasted more than a decade. Several other incidents have plagued the region, including the deaths of several dozen people during the high school football playoffs. Among the victims were several high schoolers. In addition to the shootings, a number of other gun related crimes have been reported.
The San Mateo County Sheriff’s Office confirmed that the aforementioned man was on their hands and legs at the time of his arrest. A few hours later, he was in the hospital undergoing a medical evaluation. Among his medical issues, were two fractured vertebrae, a concussion and an injury to the leg.
China’s property sector has dragged on growth
China’s property sector is facing major challenges, which could have a ramification on the world’s economy. Real estate accounts for about a quarter of the country’s GDP. It was a key contributor to the country’s growth during the past 20 years.
But now the sector has started to slow down, as a result of strict curbs on debt, housing speculation and a drop in new home sales. These measures are part of a policy package, which is meant to ward off further weakening of the economy.
During the past three years, the country’s housing market slowed down and flipped from being a driver of growth to an economic drag. Home prices dropped to their lowest level in nearly a decade. Even the surviving developers are cash-strapped. They cannot finish construction on apartments they have already sold and are waiting for financial help from the government.
Climate change is the biggest long-term challenge
It’s no secret that climate change is a serious issue. Not only does it affect the environment, but it also has a major impact on human wellbeing. This can lead to increased extreme weather events, droughts, food insecurity and water shortages.
Humans have been adding more greenhouse gases to the atmosphere since the Industrial Revolution. These gases are affecting weather patterns and sea levels. Several regions are already warming, including the Arctic. However, the effects will continue to grow as more greenhouse gases are emitted.
Some of the most vulnerable populations, like the poor, live in warmer neighborhoods. They have fewer resources to adapt to changes in weather. In addition, climate change affects ecosystems and water systems.
To mitigate the risks from climate change, people need to take action. These efforts include switching energy sources and improving how we grow food.
Credit card and personal-loan delinquencies likely to rise in 2023 to the highest in a dozen years
The TransUnion Consumer Pulse Study predicts more Americans will be behind on their loan payments in the coming year, with serious delinquencies on credit cards and personal loans expected to rise to the highest levels in a decade. A recent survey asked 2,800 people about their financial outlook for the year ahead. They found that more than half of respondents were optimistic about their finances, likely due to the hope of increasing wages.
Inflation is at record levels, putting pressure on consumers. But it also has a smaller effect on the ability of borrowers to repay their debt than job status.
Home equity lending, a key lending area, is expected to continue its strong performance in 2023. Lenders will tighten their underwriting standards, which could slow the growth of originations.
Comments are closed.