Economic growth appears to be weakening according to early December Primary Manufacturing Index (PMI) data. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, indicated that annual GDP growth for the fourth quarter is expected to be around 2.5 percent. However, economic expansion has slowed for two consecutive months. Notably, new sales declined sharply ahead of the holiday season, suggesting that economic activity could slow further in 2026. Signs of economic weakness are evident across various sectors. The large service sector saw new orders stagnate, while factories experienced a decline in orders for the first time in nearly a year. Although manufacturers reported some improvement in production, falling sales indicate it will be difficult to maintain current output levels unless demand increases in the new year. Service providers also reported the slowest sales growth rate since 2023 in December. This situation poses challenges for both the global and domestic economies, especially if demand recovery is delayed, potentially leading to further slowdowns in industrial and service sectors. Governments and businesses need to take appropriate measures to stabilize the economy and restore growth momentum.
Source: binance
