Read the highlights of this week’s commentary from Helios:
- The US still leads the world in the ways that matter, maintaining an edge in economic strength, demographic resilience, and global alliances. Its economy outpaces the EU by about a third and has widened its lead over China in GDP. The US benefits from a stable demographic outlook, while China and Russia face demographic crises with shrinking workforces and aging populations threatening their stability.
- According to a United Nations index, global food prices rose by nearly 7% in 2024, marking the first annual increase since 2021. The Food and Agriculture Organization (FAO) noted that rising costs of vegetable oil and grains may continue this year, while meat and dairy prices could decline unless disrupted by animal disease outbreaks.
- December’s ISM Manufacturing PMI rose to 49.3 (up from 48.4 previously), driven by higher new orders and improved factory production. However, the manufacturing sector continues to contract, with employment falling sharply, signaling a weaker labor market. The prices-paid index also rose, suggesting slower progress toward disinflation.
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