Weak manufacturing data worldwide cast a cloud on Korea Inc.
Manufacturing businesses around the world are rapidly coming to a halt. Even the U.S. economy, which has led the global economy, is cooling quickly, deepening the gloom. The U.S. manufacturing PMI (purchasing managers' index) has fallen to its lowest level since the global financial crisis 10 years ago.
Shocked by the weak manufacturing data, the New York Stock Exchange and bourses in major European countries including Germany, France and the U.K. plunged simultaneously.
The manufacturing slump is not limited to the United States. In 19 eurozone countries, the manufacturing PMI also dropped to its lowest level in seven years. The Chinese and Japanese economies are also stalling. China is finding it difficult to expect 6 percent economic growth this year; while large Japanese manufacturers' business sentiment has hit a six-year low.
The U.S. economy's downturn is due mainly to the country's trade war with China. Since Washington began its trade offensive against Beijing, major economies, not to speak of Korea, have suffered. The only exception was the U.S. However, even the U.S. seems to have come under its negative influence now. American exports began to contract in July and employment deteriorated last month.
The Trump administration does not seem to care much about the global slowdown. On Tuesday (local time), the U.S. government announced it would impose punitive tariffs on the EU as it did on China. The U.S. will slap import duties of 10 percent and 25 percent, respectively, on aircraft and agricultural products from Oct. 18. Washington's move follows a World Trade Organization decision that EU subsidies for Airbus were illegal.
The collapse of the worldwide supply network is speeding up the global economy's fall into a recession. Nevertheless, the Trump administration is showing few signs of remedying the situation. Korea is sure to become the biggest victim of shrinking global trade. In Korea, consumer prices have seen a contraction for two consecutive months, spreading fears of deflation. The storm clouds are gathering over Korea Inc. ― again. The government should work out meticulous countermeasures based on a worst-case scenario.
Manufacturing businesses around the world are rapidly coming to a halt. Even the U.S. economy, which has led the global economy, is cooling quickly, deepening the gloom. The U.S. manufacturing PMI (purchasing managers' index) has fallen to its lowest level since the global financial crisis 10 years ago.
Shocked by the weak manufacturing data, the New York Stock Exchange and bourses in major European countries including Germany, France and the U.K. plunged simultaneously.
The manufacturing slump is not limited to the United States. In 19 eurozone countries, the manufacturing PMI also dropped to its lowest level in seven years. The Chinese and Japanese economies are also stalling. China is finding it difficult to expect 6 percent economic growth this year; while large Japanese manufacturers' business sentiment has hit a six-year low.
The U.S. economy's downturn is due mainly to the country's trade war with China. Since Washington began its trade offensive against Beijing, major economies, not to speak of Korea, have suffered. The only exception was the U.S. However, even the U.S. seems to have come under its negative influence now. American exports began to contract in July and employment deteriorated last month.
The Trump administration does not seem to care much about the global slowdown. On Tuesday (local time), the U.S. government announced it would impose punitive tariffs on the EU as it did on China. The U.S. will slap import duties of 10 percent and 25 percent, respectively, on aircraft and agricultural products from Oct. 18. Washington's move follows a World Trade Organization decision that EU subsidies for Airbus were illegal.
The collapse of the worldwide supply network is speeding up the global economy's fall into a recession. Nevertheless, the Trump administration is showing few signs of remedying the situation. Korea is sure to become the biggest victim of shrinking global trade. In Korea, consumer prices have seen a contraction for two consecutive months, spreading fears of deflation. The storm clouds are gathering over Korea Inc. ― again. The government should work out meticulous countermeasures based on a worst-case scenario.
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