Business Maverick: Business Activity Slumps Globally, Feeding Recession Concerns

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Economic activity weakened from the US to Europe and Asia, reinforcing concerns that soaring prices and the war in Ukraine will tip the world into a recession.

also fell as record energy and food inflation saps demand and more sectors succumb to the darkening outlook.

In Europe, manufacturing drove the drop, but a post-lockdown rebound in services like tourism almost ground to a halt. The data paint a bleak picture for the global economy, with most central banks still focused on taming inflation by raising borrowing costs. And while rate hikes will add to the pain of the downturn, they may not even bringback to where they were before this spike, according to investors including Pacific Investment Management Co.

 

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