The needle on a scale used to measure so-called animal spirits shifted to the left before returning to its initial position for six consecutive months before gaining momentum in December. Eight high-frequency indicators examined by Bloomberg show that declining exports, a slowdown in manufacturing, and a slowdown in services were the main causes of the business activity contraction, which was countered by an improvement in consumer drivers represented in tax collections and job creation.
Source: Study IQAccording to surveys of purchasing managers, both manufacturing and service activities slowed down in January. The composite index fell from an 11-year high in December as a result of slower growth in output and new orders.
Despite fresh orders from international markets, Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence, noted that the gain was at best modest and declined significantly to a ten-month low.
According to figures issued by the Commerce Ministry, exports decreased 6.58 percent to $32.9 billion in January from a year earlier, showing a decline in global demand for commodities. The trade gap decreased to its lowest level in a year as a result of lower imports, which raised expectations for a considerably smaller current account deficit.
What are your views on this? Comment your views in the section below.
