Crises cost jobs
With the lawmakers of the US poised to agree a deal which merely postpones the real decision on its budget and debt ceiling a few months down the line, the cost of this and previous shutdowns and budgetary impasses is estimated to have been significant. A study by independent researchers Macroeconomic Advisers claims that the disruption and uncertainty caused by fiscal policy spats has raised the unemployment rate by 0.6 per cent this year, effectively costing 900,000 jobs. Furthermore, reduced discretionary spending since 2010 has slashed 0.7 per cent from GDP.
Baltic Dry runs hot
The Baltic Dry Index (BDI) tracks freight rates for vessels carrying dry bulk such as iron ore and coal. Historically, it has been a reliable barometer of the state of the global economy, and it still can be according to Jeremy Penn, chief executive of the Baltic Exchange, but “only if other factors are fully understood and accounted for.” The index doubled between mid-August and the end of September, and despite falling back in recent days, still averages 2,066 this month having been as high as 2,146, it’s best level in almost two years. However, the rally has been driven by restocking of iron ore in China, creating a shortage of huge Capsize vessels to ship it, rather any upturn in the global economy.
Online support grows
Online sales of non-food products in the UK grew 13.4 per cent in September, compared with a year ago, according to fresh data from the British Retail Consortium. What’s more, over the past three months, online contributed to one third of total non-food retail growth and, had it not been for this contribution, total sales of clothing and footwear would have declined in September. The figures also show that last month, online sales represented 17.5 per cent of total non-food sales, the highest penetration rate this year, which director-general Helen Dickinson says highlights the growing importance of understanding online sales.
Online Non-Food Sales Growth
3 month average contribution to non-food sales growth
3m rolling average growth of non-food sales
