Economic data released in US, Europe and China are nothing but disappointing. This slew of figures presented a glim reading on the state of the world’s economy.
US economy in May added the fewest jobs in a year. The jobless rate rose unexpectedly – giving further evidence that the much hope-for recovery in the job market has stalled. The US manufacturing growth also slowed in May.
It was also reported that eurozone manufacturing sank deeper in May, hitting its lowest level in three years as employers shed jobs. PMI fell to 45.1 in May from 45.9 in April. Unemployment in eurozone stood at a record high of 11%.
China led a slowdown in manufacturing across Asia. PMI fell to 50.4 in May from 53.3 in April – signaling a deepening economic slowdown. The outlook for the Indian factory growth is not good either, PMI was marginally down to 54.8 in May from 54.9 in April.
Greece’s leftist party, likely to win crucial June 17 elections, vowed to scrap international bailout, seek loan payments freeze and reverse austerity reforms including privatization.
The situation in eurozone is deteriorating at an alarming rate and will soon be as bad or worse than that seen at the height of the 2008-09 crisis. In fact, the black hole in eurozone has been there more than a year ago. Nothing real has been done to close up this hole. So this time round, I believe it will turn real bad. This black hole will likely emit economic dark clouds to the rest of the world.
Many major economies, including several in Asia, are faltering or shrinking. Will The Little Red Dot be facing the economic headwinds again?