“This is just the start of a wider banking crisis,” said Shawn DuBravac, IPC chief economist. “One that will get worse before it gets better. Banks will be cautious, raising lending standards, protecting capital, and creating greater liquidity buffers. Expect the coming months to remain volatile.”
The report also shows that the U.S. job market remained strong, and individuals appear to be reentering the labor market as the economy softens.
In Europe, economic growth was flat, while manufacturing production largely stabilized after eight months of contraction. Supply chains continue to improve which is easing strains on production schedules.
The report also showed that manufacturing output in the EU rose in January. Output increased 0.8% (month-on-month) and is up 1.7% over the last year.
In addition, the electronics industry, which includes categories such as components, loaded boards, computers, communications equipment, and consumer electronics, rose 4.5% (month-on-month) in January. The sector is up 10.4% over the last year.
