McKinsey – Global Economics Intelligence, Aug 2024

The latest economic data shows mixed results, with U.S. growth for Q2 2024 revised upward to 3.0% while global labor markets are showing some softening. Central banks are considering interest rate moves, with the FOMC decision in September highly anticipated. Manufacturing has contracted globally, registering 49.7 in July on the PMI, while services continue to grow steadily at 53.3. In the advanced markets, the U.S. and Eurozone saw GDP growth in Q2 2024, with China's industrial output remaining stable. Russia faces uncertainty due to tighter monetary policy, while Mexico's GDP growth is being driven by different sectors each quarter. The markets are waiting on a Fed decision regarding interest rates in September, with expectations for a rate cut. Overall consumer confidence has declined in most countries due to high prices, with consumer spending decelerating except for in Brazil. Central banks are aiming to anchor inflation expectations, with a mix of easing and acceleration in different regions.