manufacturing
6 briefs
China's Factory Prices Just Hit a 45-Month High. The Iran War Did It, and Beijing Cannot Undo It.
China's PPI jumped 2.8% in April, ending 41 months of factory deflation. Cost-push inflation from Iranian oil disruptions is pressuring manufacturer margins in an economy where domestic demand is still weak.
The Special Relationship, Invoiced
UK exports to the US fell 25% after Liberation Day tariffs. Britain now runs a trade deficit with its largest trading partner. Polymarket says there is only a 22% chance of a deal before 2027.
America Is Winning the AI Race and Losing the War
China isn't trying to build the best AI model. It is building the best factory. Those are different competitions, and the US has barely started the second one.
Business Is Growing. Prices Are Growing Faster.
April's flash PMI hit a 47-month high for manufacturing. It also logged the fastest input price inflation since 2022. Both facts are true. The Fed cannot act on either one.
Sanders and the UAW Say AI Will Do to Factory Workers What NAFTA Did. They Are Probably Right.
Bernie Sanders and UAW President Shawn Fain held a Capitol Hill press conference warning that AI could wipe out 600,000 Midwest manufacturing jobs. Nobody in Congress is drafting a response.
China's Deflation Is Over. The Replacement Is Worse.
After 41 months of falling factory prices, China's PPI turned positive in March. The cause is not demand recovery. It is a war in Iran driving up energy costs that Chinese manufacturers cannot pass on to consumers who are not buying.