<\/p>\n
Shoppers on 5th Avenue in New York.<\/p>\n
(Bloomberg) — US consumer spending rose in July by the most in four months as stronger income growth bolstered demand in the face of high prices.<\/p>\n
Most Read from Bloomberg<\/p>\n<\/p>\n
While Americans continue to spend, the momentum is at risk of ebbing as job growth slows and prices keep climbing. The Federal Reserve\u2019s preferred gauge of core inflation picked up to 2.9% on a year-over-year basis, the most since February.<\/p>\n
In Germany, inflation quickened more than expected while price pressures were more moderate in France, where political instability risks endangering a nascent economic recovery.<\/p>\n
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:<\/p>\n
US<\/p>\n
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Economists anticipate ho-hum US economic growth for the remainder of the year and well into 2026, with steady, tariff-driven inflation buffeting consumers. However, inflation-adjusted consumer spending rose 0.3%, the most in four months, according to government data out Friday. The advance was driven by goods and boosted by income growth.<\/p>\n
<\/p>\n
President Donald Trump\u2019s fight with the Fed entered uncharted territory this week. Whoever wins, the damage to an institution at the heart of the US economy \u00a0\u2014 \u00a0and the world\u2019s financial markets \u2014 will be hard to undo.<\/p>\n
<\/p>\n
Once rare, seven-year car loans are fast becoming the norm. They\u2019re often the only way buyers can afford new rides, with average sale prices surging 28% in five years to approach $50,000. Compared to a five-year loan, they can make the difference between a $1,000 monthly payment and a $780 one. But they come with steep downsides, for buyers and dealers alike.<\/p>\n
Europe<\/p>\n
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German inflation quickened more than anticipated to surpass 2%, capping a mixed round of price data from the region\u2019s top economies that\u2019s unlikely to persuade the European Central Bank to change interest rates next month. Figures earlier in the day all fell just short of expectations, with France remaining well below the ECB\u2019s goal at 0.8%, Italy closer at 1.7% and Spain above it at 2.7%.<\/p>\n
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France\u2019s latest bout of political instability is set to endanger a nascent economic recovery as companies hold off on hiring and investment. With lawmakers preparing to topple the government in a Sept. 8 confidence vote called by Prime Minister Francois Bayrou, company executives are likely to want to see how any new administration gathers support and addresses the need to narrow the euro area\u2019s largest budget deficit.<\/p>\n
Story Continues <\/p>\n
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Dutch Prime Minister Dick Schoof and his cabinet face a no-confidence motion in parliament, a move that could lead them to step down and plunge the country into an unprecedented political crisis. The Dutch turmoil adds to European tensions, with France\u2019s government also on the brink of collapse. The instability complicates Europe\u2019s efforts to respond to US tariffs and support peace efforts for Ukraine.<\/p>\n
Asia<\/p>\n
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China needs to spend more heavily on public welfare in the coming decade to expand consumption to the point where it accounts for around half the economy, a policy adviser said, joining a chorus of experts in favor of a shift in resources from investment and production.<\/p>\n
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South Korea\u2019s consumer confidence rose to the highest in seven years as surging stock prices and resilient exports offset uncertainties surrounding US tariffs. Confidence has now increased for a fifth consecutive month as the nation continues to recover from political turmoil at the start of the year. While the return to stability has helped fuel the gains in equities, expectations that the US Fed is inching toward a rate cut have added to the momentum.<\/p>\n
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Indian exporters hit by President Donald Trump\u2019s 50% tariff say they can\u2019t survive without government support, as calls for relief grow. The tariffs \u2014 which took effect Wednesday in Washington \u2014 doubled the previous 25% duty and are now among the highest in Asia, leaving Indian goods uncompetitive in the US market.<\/p>\n
Emerging Markets<\/p>\n
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Africa has become a new hotspot for Chinese exports as US tariffs redraw trade for the world\u2019s biggest manufacturing nation. With a 25% on-year jump to $122 billion, growth in sales to the continent of 1.5 billion people has far outpaced other major markets this year while orders from the US slumped.<\/p>\n
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Zambia\u2019s annual inflation eased to an almost two-year low in August as a stronger currency helped curb import costs. Consumer prices rose 12.6% compared with 13% in July. Africa\u2019s second largest copper producer is benefiting from a jump in the price of the metal. That\u2019s led the kwacha to appreciate almost 19% against the dollar this year, making it one of the world\u2019s best-performing currencies tracked by Bloomberg.<\/p>\n
World<\/p>\n
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Hungary maintained the European Union\u2019s highest borrowing costs, while the Bank of Korea, Kazakhstan and Gambia also kept rates unchanged. Central bankers in Guatemala and the Philippines lowered rates, while Egypt\u2019s central bank reduced them by more than expected.<\/p>\n
–With assistance from Maria Eloisa Capurro, William Horobin, Heesu Lee, John Liu, Yujing Liu, Alex McIntyre, Taonga Mitimingi, Saleha Mohsin, Keith Naughton, Mark Niquette, Amara Omeokwe, Julien Ponthus, Catarina Saraiva, Zoe Schneeweiss, Mark Schroers, Shruti Srivastava, Jade Thomas, Patrick Van Oosterom, Fran Wang and Alexander Weber.<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"Shoppers on 5th Avenue in New York. (Bloomberg) — US consumer spending rose in July by the most…\n","protected":false},"author":2,"featured_media":385567,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[3662,23704,13205,62002,14441,3663,36,133751,133752,78024,49,978,659],"class_list":{"0":"post-385566","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-bloomberg","9":"tag-consumer-confidence","10":"tag-consumer-spending","11":"tag-core-inflation","12":"tag-european-central-bank","13":"tag-financial-markets","14":"tag-france","15":"tag-income-growth","16":"tag-political-instability","17":"tag-the-federal-reserve","18":"tag-united-states","19":"tag-us","20":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115119166799499739","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/385566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=385566"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/385566\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/385567"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=385566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=385566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=385566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}