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Economy

US Consumer Spending Increased by 0.4 Percent

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U.S personal income increased by 0.3 percent or $52.5 billion, while consumer spending increased by 0.4 percent or $54.9 billion in August, according to the Bureau of Economic Analysis.

Personal income came out short of 0.4 percent forecasted in August, and 0.2 percent short of what was obtained in July.

The data shows that gain in the labor market recorded in August coupled with affordable gasoline due to lower energy prices and growing incomes have helped increase consumer expenditures, which accounts for around 70 percent of the total US economy.

Although inflation is still below the projected FED’s 2 percent, most analysts have attributed it to the poor energy sector due to a fall in global oil prices.

Pending home sales data released on Monday by the National Association of Realtors, shows a 1.4 percent decline in August from 0.5 percent recorded in July. This is the lowest pending home sales since June 2015.

The data further validated the fact that the U.S economy is yet to reach full recovery, even though GDP surged 3.9 percent, research has shown that consumer spending is largely responsible for positive economic data, which might not translate to future positive outlooks except exports and the global economy pick up the pace.

US dollar lost 0.04 percent against the Euro and 0.55 percent against the Japanese Yen after the data were made public.

Still early to infer possible market direction as we await Non-Farm Payroll (NFP) and key market events across the globe later in the week.

But nevertheless, Investors King has eyes on EURGBP for possible sell order because of several exhausting candlesticks and fundamentally, Investors King does not see 0.74249 resistance breaking just yet.

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Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Tinubu Forms Economic Advisory Committee with Private Sector Titans

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Bola Tinubu

In a bid to address Nigeria’s economic challenges amidst soaring inflation and currency depreciation, President Bola Tinubu has announced the formation of an Economic Advisory Committee with influential figures from the private sector.

The decision follows a high-level meeting held at the State House in Abuja, where key stakeholders deliberated on strategies to stabilize the economy and mitigate the rising cost of living.

Among the notable members enlisted to the committee are Tony Elumelu, Chairman of United Bank for Africa, and Aliko Dangote, Chairman of Dangote Group, both distinguished figures in Nigeria’s business landscape.

The inclusion of these private sector titans underscores Tinubu’s commitment to engaging diverse perspectives and expertise in charting a path towards economic recovery.

Speaking on behalf of the federal government at the meeting, President Tinubu emphasized the imperative of collective efforts in revitalizing the economy and ensuring a brighter future for all Nigerians.

He underscored the importance of addressing pressing issues such as food security, job creation, and the stabilization of the exchange rate.

In response, Aliko Dangote expressed optimism about the committee’s potential to generate actionable recommendations that would foster economic growth and alleviate poverty across the nation.

Similarly, Tony Elumelu highlighted the significance of implementing effective policies to drive employment opportunities and enhance food security.

The committee’s mandate encompasses a broad spectrum of economic concerns, including currency stability, inflation management, and fiscal policy reforms.

As Nigeria grapples with the multifaceted challenges of a turbulent economy, the collaborative efforts of government and private sector stakeholders signal a proactive approach towards finding sustainable solutions and restoring confidence in the nation’s economic prospects.

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Economy

Federal Government Halts Cooking Gas Export to Lower Local Prices

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cooking gas cylinder

In a bid to stabilize domestic prices and meet rising demand for cooking gas within Nigeria, the Federal Government has announced a temporary halt on the exportation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.

This decision follows a significant surge in the cost of cooking gas, which has placed a strain on consumers across the country.

According to reports, the halt in LPG export aims to increase the availability of the commodity within Nigeria’s borders, thereby reducing its local price.

The move is part of broader efforts to address the challenges faced by consumers grappling with the high cost of living.

In recent years, the demand for cooking gas has steadily increased in Nigeria, driven by urbanization, population growth, and a shift towards cleaner energy sources.

However, despite being a major producer of LPG, Nigeria has struggled to meet its domestic demand due to insufficient local production and distribution infrastructure.

Data from the Nigerian Midstream Downstream Petroleum Regulatory Authority reveals that while the total consumption of cooking gas in Nigeria has been on the rise, the country has relied heavily on imports to bridge the supply gap.

The recent decision by the government underscores its commitment to prioritizing the domestic market and ensuring that Nigerians have access to affordable cooking gas.

Consumers have been grappling with escalating prices, with reports indicating a significant increase in the cost of refilling a 12.5kg cylinder of cooking gas in major cities like Abuja, Lagos, and Kano.

The decision to halt LPG exports signals a proactive measure by the government to mitigate the adverse effects of rising prices and alleviate the financial burden on households across the nation.

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Economy

Manufacturing Sector Records 7.70% Quarter-on-Quarter Growth in Q4 2023

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German manufacturing

In the fourth quarter of 2023, Nigeria’s manufacturing sector grew by 7.70% year-on-year, according to the National Bureau of Statistics (NBS).

The surge in growth reflects a significant uptick from the preceding quarter and underscores the resilience of the manufacturing industry amid economic challenges.

This growth trajectory indicates positive momentum and signals potential opportunities for economic recovery and development.

The manufacturing sector, comprising thirteen key activities ranging from oil refining to motor vehicles and assembly, demonstrated notable dynamism across various subsectors.

This growth surge is attributed to increased production, enhanced operational efficiencies, and strategic investments across the manufacturing value chain.

Despite facing headwinds such as supply chain disruptions and regulatory uncertainties, the sector’s robust performance underscores its pivotal role in driving economic diversification, job creation, and industrialization efforts in Nigeria.

Moving forward, sustaining this growth momentum will require continued policy support, investment in infrastructure, and efforts to address key bottlenecks hindering the sector’s expansion.

By fostering an enabling business environment and promoting innovation and technology adoption, Nigeria’s manufacturing sector can further catalyze inclusive economic growth and contribute significantly to the nation’s development agenda.

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