CAIRO: Japan’s crude steel output fell 8.5 percent in July from a year earlier, sliding for a seventh consecutive month as demand remained weak due to a slow recovery in automobile production, the Japan Iron and Steel Federation said on Tuesday.
Output, which is not seasonally adjusted, dropped to 7.33 million tons in the world’s third biggest steel producer, and slipped 1.6 percent from June.
“Repeated delays in recovery by automakers’ production amid a shortage of chips and other parts caused sluggish demand for steel products,” an analyst at the federation said.
Indonesia hikes rates for first time since 2018 to temper inflation
Indonesia’s central bank raised its benchmark interest rate for the first time since 2018 on Tuesday, stepping up monetary tightening to fight rising inflation and stabilize the rupiah.
Southeast Asia’s largest economy has made a steady recovery from pandemic disruptions and benefited from strong global demand for commodities.
The central bank now expects economic growth to come in near the top end rather than lower end of its 4.5-5.3 percent forecast in 2022.
Bank Indonesia hiked the seven-day reverse repurchase rate by 25 basis points to 3.75 percent.
Eurozone business activity contracted again in August, outlook bleak
Business activity across the eurozone contracted for a second straight month in August as the cost of living crisis forced consumers to curtail spending while supply constraints continued to hurt manufacturers, a survey showed on Tuesday.
The global economy is increasingly at risk from sliding into recession as Russia’s invasion of Ukraine and China’s strict COVID-19 lockdowns have further damaged supply lines not yet recovered from the pandemic.
Meanwhile, consumers are facing the highest inflation in a generation which is forcing central banks to tighten monetary policy aggressively just as the economies need support.
(With input from Reuters)
