Economy

 

Steelworks in Braddock, Pennsylvania. Archive image. Gene J. Puskar / AP 

  

US growth  

Producer prices in the US rose more than expected in July  

 

Producer prices in the US rose somewhat faster than expected in July, contrary to the trend towards a weakening of inflationary pressure.  

 

The producer price index (PPI) rose by 0.3 percent from the previous month. According to a Dow Jones survey, expectations were +0.2 percent, reports CNBC.  

 

The conditions were exactly the same for the so-called core PPI, which strips out the effects of food and energy prices and other more volatile factors. 

 

Jae C. Hong / AP 

 

Tesla's future  

Electric car market near plateau – bad news for Tesla  

 

Growth in the electric car market is approaching a plateau, which is bad news for companies like Tesla and Ford. That's what Business Insider writes.  

 

- The spectacular growth we have seen in recent years cannot be sustained. It's simply not possible, says Sam Fiorani, head of forecasting at Autoforecast Solutions.  

 

Several observers believe that the transition from early electric car buyers, who are often enthusiasts, to the broad masses will entail growing pains.  

 

Karl Brauer, analyst at I See Cars, says that the experience from various states in the US shows that there is "a natural resistance" when the share of electric cars reaches 7-10 percent. 

 

- That seems to be the ceiling, then it will be much more difficult to grow further.  

 

ECB head Christine Lagarde. Arne Dedert / AP  

 

ECB vs inflation  

A majority believe the ECB will hold back in September  

 

In the Reuters poll, most, 37 out of 70 analysts, say they believe the European Central Bank will not raise interest rates in September. 

 

- Our main scenario is that the ECB remains unchanged for a longer period of time. But inflation setbacks could force an increase later this year, says Bas van Geffen at Rabobank.  

 

ECB chief Christine Lagarde opened up to this during the last interest rate announcement, when she said that the central bank "right now" had no more ground to cover.  

 

Shopping on Oxford Street. Kirsty Wigglesworth / Ap  

 

Britain's future  

UK GDP unexpectedly strong in second quarter  

 

British GDP rose 0.2 percent in the second quarter of the year compared to the previous one, preliminary figures from the Statistics Office show. Compared to the same quarter last year, it rose 0.4 percent. What the analysts expected was an unchanged GDP. 

 

Monthly statistics have also been presented and in June GDP rose 0.5 percent against the expected 0.2 percent.  

 

Strong growth in household consumption was behind the increase, writes CNBC. The day off associated with the drive of King Charles also reportedly contributed to a strong quarter.