The Washington Post reported on the 29th that U.S. new home sales fell for the third straight month through March due to rising interest rates, and the 3% mortgage rate, which had been maintained for 10 years, exceeded 5% for the first time, "creating new economic uncertainty," The Washington Post reported on the 29th.
The U.S. economy plunged unexpectedly to 1.4 percent per annum in the first three months of this year, after more than a year of rapid growth of 5.7 percent, according to a report released by the Bureau of Economic Analysis on the 28th. "It raises concerns about a recession in the country," he said.
According to the Korea National Statistical Office, the cyclical variability of the leading composite index for forecasting future economic conditions fell 0.3% in March after a 9-month drop in March, and the cyclical variability of the coincident composite index of the current economic situation turned 0.2% down in March for the first time in six months. He said that it was diagnosed as 'fear of a recession'.
Production in all industries increased by 1.5% MoM in March thanks to the brisk service industry, but semiconductors, the mainstay, fell 2.3% MoM.
As for the decrease in consumption, the retail sales index was 120.1 in March, a decrease of 0.5% from the previous month, and a 4.1% increase in non-urable goods resulted in a 7.0% decrease in durable goods for home appliances and passenger vehicles and a 2.6% decrease in semi-durable goods such as clothing, heralding an economic recession.
The FKI said on the 25th that in terms of semiconductor imports from the United States, Taiwan's share increased by 4.4%p and Japan's share by 1.8%p last year compared to 2018, but Korea's share decreased by 5.5%p. On the other hand, Korea said it increased by 6.5%.In particular, he said that last year, China's imports of Korean memory semiconductors fell by 13.7% compared to 2018.
In response to the US consumption slowdown, the Washington Post said: "The stimulus package has fallen, prices have risen, and the future of consumption has become unsettling." More than 400,000 jobs were created in March for the 11th month in a row, the unemployment rate to a 10-year low and a new epidemic low. “Despite higher costs, families and businesses continue to spend and invest,” he said. “Uncertainty is approaching.”
Harvard University professor Kenneth Rogoff (former IMF chief economist) said: "I can't read too many of these numbers, but there are significant concerns about the risk of a recession in both the US and Europe and China, and they will probably all reinforce each other like a perfect storm. You can," he told the post.
Regarding the “future consumer unrest” in the U.S., The Washington Post reported that “economists say that this international crisis (the Ukraine war and the Chinese blockade) will further soften demand for U.S. exports, which have been struggling to rebound since the pandemic.”
U.S. President Joe Biden made a speech on the 28th, requesting the Congress for an additional $33 billion in aid to Ukraine, saying, "The money to help Ukraine has run out." It announced an additional aid totaling $1.3 billion in $1.3 billion, and requested an additional budget, saying it had exhausted the $13.6 billion approved by Congress last month.
The request for $33 billion more than doubled last month's approval, $20 billion in arms and logistics support, $8.5 billion in finance, $3 billion in humanitarian aid, and expansion of long-term warfare by strengthening arms support.
The U.S. recession escalated to an all-time high in March as retailers' inventory purchases declined earlier this year and the gap between U.S. exports and imports (the trade deficit) widened.
“Many companies bought less inventories than usual earlier this year because they have leftovers from late last year, when they stocked up on additional goods to prevent supply chain shortages and delays,” the Washington Post said. It's likely, economists say," he said, citing trade deficits and 'reducing inventory purchases by businesses' as harbingers of a downturn.
Deputy Prime Minister Hong Nam-ki on Facebook on the 29th said, "Short-term adjustments of the economic companion index occur frequently, so there is no need to fuss. Which side will have more power will determine the course of the game going forward.”