SaltWire's Atlantic regional weather forecast for October 26, 2023 | SaltWireLONDON - Global economic activity was mixed during the third quarter of 2023, with distinct signs of improvement in the United States and China but continued sluggishness elsewhere.
Preliminary estimates show U.S. real gross domestic product increased at an annualised rate of 4.9% in the three months from July to September up from 2.1% in the three months from April to June. Service sector prices rose at an annualised rate of 5.2% in the three months ending in September up from 3.3% in the three months ending in June.
Real final sales to private domestic purchasers , a measure that strips out volatile changes in inventories, trade and government spending, increased at an annualised rate of 3.3% between July and September. The unemployment rate was just 3.8% in September while inventories of diesel and other distillate fuel oils were 19 million barrels below the prior 10-year seasonal average.China's economy also appears to have returned to growth during the third quarter after a slump in the second quarter.
The port handled a record volume of shipping containers in the last 12 months and volumes were up more than 4% in September compared with a year earlier. Global container shipping rates have fallen again in both September and October after rising over the summer in another sign demand remains sluggish.Europe remains the weakest region as it struggles with the combined impact of higher energy prices and the disruption of trade flows following Russia's invasion of Ukraine as well as persistent inflation and higher interest rates.
But growth remains skewed towards services rather than merchandise, which will act as a drag on international trade flows.