Morning Economic Report 8-1-25

Economy update

It is manufacturing day, and the picture is mixed. Asian factory activity (China, South Korea and Japan) deteriorated in July, although the latter two were measured before the trade deals. In Europe, the sector’s index climbed to 49.8 and is now flirting with the critical 50 level. Headline inflation remained steady at 2%. The US President imposed tariffs ranging from 10% to 41% on several countries. It has seemingly triggered a decent bout of sell-off in European shares. US nonfarm and manufacturing data will be released this afternoon.