While the US and China seem more ready to work towards a trade agreement to avoid further damage to their economies, the end is still not in sight. The US is caught up in domestic politics and China seems okay to wait it out.
In the meantime, the global economy continues to lag, moving closer to that scary word, “recession.” So far China and the EU have felt the brunt of an economic slowdown, but analysts believe it’s a matter of time before the US feels the pinch.
Below are some highlights from CBX Software’s Q4 2019 Retail Sourcing Report.
- Brazil was one of a few economies to see moderate growth through Q3, while most economies saw lower domestic and export demand.
- Container shipping volumes are down even as carriers cut capacity. Shipping carriers reduced capacity and are expecting a slower peak season
- Commodity prices continued to slide through Q3 and into Q4.
- The Chinese government allowed the Yuan to depreciate beyond the 7:1 point.
If the US and China can work out a deal in Q4 the global economic climate might improve, but the odds are against this happening.
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