- US Empire State Manufacturing Index Worse than Expected
- United Nations: The World Will Grow Rapidly in 2021
- Biden Talks to Technology and Automotive Executives to Solve Chip Crisis
US Empire State Manufacturing Index Worse than Expected
Manufacturing activity in the US State of New York increased at a slower-than-expected pace in August. The number of factories reporting a decrease in orders has increased. The New York Fed’s general operating conditions index fell to 3.7 in August, coming in worse than expected. July data was 17.2, the highest value since November 2018. A weak manufacturing gauge indicates that the coronavirus continues to block the strong recovery.
The median estimate of economists surveyed by Bloomberg was 15. The figures announced in the data above the zero level show that there is growth in the sector. The indicator fell to an all-time low of -78.2 in April.
While 34 percent of survey respondents said that operating conditions have improved, about 30 percent said that activities are declining. The new orders index fell from 13.9 to minus 1.7. The delivery index fell from 18.5 to 6.7.
Manufacturers in New York were less optimistic about the economic conditions for the next six months. The New York Fed’s future index fell to 34.3 from 38.4.
United Nations: The World Will Grow Rapidly in 2021
The United Nations Conference on Trade and Development (UNCTAD) states in its “2021 Trade and Development Report” that the global economy will expand by 5.3 percent this year, the fastest growth in nearly 50 years. It expects the Turkish economy to grow by 3.9 percent this year and by 3.6 percent next year.
The report stated that the global economy will recover this year due to the continuation of public incentives that started in 2020 due to the coronavirus and the successful vaccination in advanced economies.
In the report of UNCTAD, it was emphasized that the recovery in the global economy was “uneven” and emphasized that in developed economies, while the low-income struggled to survive, the high-income people got richer.
According to the report, by 2025, developing countries will be $12 trillion poorer due to the coronavirus pandemic.
UNCTAD expects global growth to slow to 3.6 percent in 2022, with global income still below 3.7 percent before the outbreak. Pointing out that global production will only return to the trend of 2016-2019 until 2030, it was emphasized that this could deepen the problem in income growth.
Biden Talks to Technology and Automotive Executives to Solve Chip Crisis
CEOs of technology and automotive companies, especially Google, Intel, HP, Dell, Ford, and General Motors, attended the virtual summit on “Semiconductors and Durability in Supply Chains”. The meeting, attended by President Biden, was hosted by National Security Advisor Jake Sullivan, Commerce Secretary Gina Raimondo, and National Economic Council Director Brian Deese.
Biden said the chip supply problem has caused delays in auto production and reduced hours for American workers.
Supply chain issues with technology components also illustrate tensions with China, a fact made clear by Sullivan’s presence at the White House summit.
In his speech, US President Biden “Resolving the chip supply problem is an issue that has broad support in the United States Congress. We will invest aggressively in areas such as semiconductors and batteries. We will drive innovation and encourage breakthroughs. We need all your support to get this job done. We need you to support American workers and American communities across the country.” said.
The outbreak of the chip crisis was triggered by the quarantine measures taken during the epidemic period, while people were closed to their homes, and activities such as work, education, and entertainment were started to be carried out from home. Many people used computers, smart devices, tablets, and game consoles more.