world economic news

Economic News Daily – Friday 03/04/2022

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US

Tesla CEO Elon Musk has a “super bad feeling” about the economy and wants to cut about 10% of jobs at the electric carmaker, he said in an email to executives on Thursday seen by Reuters. The message came two days after the world’s richest man told employees to return to the workplace or leave the company.

TURKEY

The annual inflation rate in Turkey accelerated for the 12th consecutive month to 73.5 percent in May of 2022, the highest since October of 1998 and compared to market estimates of 76.6 percent, a report by the Turkish Statistical Institute showed on Friday. The largest jump in prices was recorded in transportation, with prices skyrocketing 107.62% year on year, followed by food and non-alcoholic beverages, up 91.63%.

GERMANY

Germany’s exports rebounded at a stronger than expected pace in April, climbing 4.4% month on month but jumping 12.9% compared to April 2021, according to data released by Destatis on Friday.  Exports to the European Union amounted to €69.4 billion, while exports to third countries stood at €54 billion. At the same time, imports rose 3.1% month on month and surged 28.1% year on year to reach €122.8 billion, out of which €56.9 billion worth of goods came from the EU. Imports from third countries stood at €63 billion.

JAPAN

The services sector in Japan continued to expand in May, and at a faster rate, the latest survey from Jibun Bank revealed on Friday with a services PMI score of 52.6. That’s up from 50.7 in April. “The Japanese service sector saw a further improvement in demand conditions midway through the second quarter. Latest PMI data signaled the strongest expansions in business activity and total new business for six months,” S&P Global Market Intelligence economist Usamah Bhatti said regarding the report.

AUSTRALIA

Australia’s Purchasing Managers Index (PMI) stood at 52.9 in May, 0.4 percentage points higher compared to the previous month, according to a Friday report by S&P Global. Meanwhile, the country’s services PMI also inched up from 53.0 in April, to 53.2 in May. “Overall business confidence improved, which was a positive sign. Higher levels of backlogged work also suggest that future output may continue to improve in the coming months,” Economics Associate Director at S&P Global Market Intelligence Jingyi Pan commented.