Economic Signals Show Rising Inflation and Slowing Growth in 2025

Consumer confidence, employment, and manufacturing activity dip as inflationary pressures and policy uncertainties shape the economic outlook.

U.S. consumer sentiment fell in January for the first time in six months, driven by inflation concerns and political polarization following President Trump's inauguration for a second term.
The U.S. services sector slowed unexpectedly, while manufacturing expanded slightly after seven months of contraction, reflecting mixed economic momentum.
In the UK, businesses face challenges from tax hikes, leading to job cuts and rising inflation, with economists warning of a potential stagflation scenario.
Eurozone business activity showed modest growth, with improvements in manufacturing offset by sluggish demand and political uncertainty in countries like France.
Global inflation concerns persist, with central banks, including the Federal Reserve and Bank of England, balancing rate cuts against the risk of entrenched price pressures.