Overseas Headlines – August 8, 2025

August 8, 2025

United States:

US Productivity Rebounds in Second Quarter as Output Picked Up

 

US labor productivity rebounded in the second quarter along with the economy, resuming a trend of efficiency gains that are helping keep a lid on wage-related inflationary pressures.

 

Productivity, or nonfarm employee output per hour, increased at a 2.4% annualized rate after declining a revised 1.8% in the first quarter, data from the Bureau of Labor Statistics showed Thursday.

 

https://www.bloomberg.com/news/articles/2025-08-07/us-productivity-rebounds-in-second-quarter-as-output-picked-up?srnd=phx-economics-v2

 

 

Europe:

German Industry Slumps Most in Almost a Year Amid Trade Flux

 

German industrial production suffered its biggest drop in almost a year, raising the prospect that Europe’s largest economy shrank last quarter by even more than initially estimated.

 

Output declined 1.9% in June from the previous month, driven by machinery and equipment, pharmaceuticals and food — far more than any economist predicted.

 

https://www.bloomberg.com/news/articles/2025-08-07/german-industry-slumps-most-in-almost-a-year-amid-trade-turmoil?srnd=phx-economics-v2

 

Asia:

Japan Lowers This Year’s Growth Forecast as Tariffs Kick in

 

Japan cut its growth forecast for the current fiscal year as US tariffs and persistent inflation weigh on the economy, complicating the policy course of the Bank of Japan and adding to pressure on embattled Prime Minister Shigeru Ishiba.

 

The government revised its real growth projection for fiscal year 2025 to 0.7%, down from the previous forecast of 1.2%, the Cabinet Office said Thursday.

 

https://www.bloomberg.com/news/articles/2025-08-07/japan-lowers-this-year-s-growth-forecast-as-tariffs-kick-in?srnd=phx-economics-v2

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2025-08-07T08:56:15-05:00