Maersk Asia Pacific Market Update October

Despite regional variations, global economic momentum has remained steady in 2024, with projected growth at 2.7%. Composite Purchasing Managers’ Index (PMI) figures indicate overall economic expansion, though manufacturing PMIs declined to 48.8 globally in September, signaling a slowdown in industrial activity. The U.S. economy remains strong, supported by robust retail sales, though a drop in consumer confidence suggests potential moderation in spending. Meanwhile, European manufacturing remains weak, with GDP growth projected at 0.8% for the year, primarily driven by the services sector, particularly in Southern Europe.

In China, economic momentum has softened, though GDP growth is expected to reach 4.8% in 2024. While exports remain a key driver, domestic demand remains sluggish, further impacted by a stagnant housing sector. Recent fiscal and monetary policies are expected to support growth efforts. Additionally, as of September 27th, the Biden administration’s tariffs—first introduced in May—have officially taken effect, affecting goods exported from China to the U.S. across multiple industries, including raw materials, intermediate inputs, and consumer products.