Chinese manufacturing shrinks amid economic slowdown - August 1, 2022

Household spending has grown increasingly strained, suggesting U.S. consumer spending power has weakened after weathering challenges posed by the COVID-19 pandemic. Consumer confidence in the economy has lowered despite increased spending on services and traveling, with the news coming as consumers spent more in June even as inflation has accelerated in recent months. While earnings reported by retailers such as Walmart painted a gloomy picture for predictions of consumer spending power, reports from American Express suggested spending has shifted to other areas rather than dropped altogether. Google announced a new initiative eliciting feedback from employees on where to focus on efficiency improvements. The “Simplicity Sprint” effort was presented as a solution to remedy what the company’s CEO says is a lack of productivity following lower-than-expected earnings and ahead of an expected tougher economy. The initiative comes as a number of CEOs have taken a concerned tone about the economy as Meta CEO Mark Zuckerburg emphasized the impact the economic downturn is having on the company’s ad business, an industry where Google is a chief player. Chinese factory activity shrank in July due to a sluggish global economy and disruptions from COVID-19. Observers noted that weak demand and strict pandemic restrictions drove the drop and suggested the nation is far from achieving post-pandemic normalcy. China’s Xinhua News Agency warned the nation’s economic recovery is not sound as the contraction in manufacturing has been coupled with a national mortgage revolt and drop in home purchases. China’s manufacturing dip, which has brought on a drop in oil prices, is notable given the country’s status as “the world’s factory” and has led some economists to predict the country faces challenges in achieving growth in the third quarter. Devastating floods have knocked out power and left at least 28 people dead in Kentucky with the state preparing for more rain this week. Gov. Andy Beshear warned residents to prepare for furthe