latest news in economy
Manufacturing Sector Sheds Jobs Despite Tariffs Intended to Spark Growth
Washington D.C., Thursday, 15 January 2026.
While tariffs were predicted to revitalize industry, data reveals the manufacturing sector actually shed 72,000 jobs since April, defying the administration’s “Liberation Day” growth forecasts.
UK Economy Beats Expectations with November Rebound Driven by Manufacturing Recovery
London, Thursday, 15 January 2026.
A dramatic 25.5% spike in car manufacturing, following Jaguar Land Rover’s recovery from a cyber-attack, propelled the UK economy to unexpectedly expand by 0.3% in November 2025, defying initial market forecasts.
New Data Reveals a Strategic Shift Toward Measurable Returns in 2026 AI Budgets
New York, Thursday, 15 January 2026.
Embracing ‘AI realism,’ companies are increasing budget allocations to 5% in 2026, shifting focus from experimental hype to infrastructure, governance, and verifiable return on investment.
Goldman Sachs Warns: AI Productivity Boom May Sever Link Between Growth and Jobs
New York, Thursday, 15 January 2026.
Goldman Sachs’ Chief Economist Jan Hatzius identifies a critical shift in the US economy as we enter 2026: the traditional correlation between robust GDP growth and a healthy labor market is fracturing. While AI adoption is projected to drive productivity gains of up to 25%, this efficiency is actively decoupling economic expansion from job creation. Unemployment has already risen to 4.4% despite solid output, with youth unemployment spiking to 8.3%. This divergence suggests AI is accelerating the economy’s “speed limit” while simultaneously dampening labor demand, creating a paradox where the economy booms while workers struggle. As productivity trends accelerate, policymakers face the unprecedented challenge of navigating a “jobless growth” phase that could fundamentally alter the social contract.
Artificial Intelligence Revives Lending for Borrowers with Low Credit Scores
New York, Thursday, 15 January 2026.
Amidst tightening bank regulations in early 2026, artificial intelligence is unlocking credit for subprime borrowers by prioritizing current income stability over past credit history. This shift in risk assessment allows lenders to identify reliable applicants who are traditionally excluded by credit score cutoffs, effectively reshaping the consumer lending landscape.
Global Economy Defies Trade Barriers with Stronger Than Expected 2026 Outlook
Washington, Wednesday, 14 January 2026.
The World Bank upgraded 2026 growth forecasts to 2.6 percent despite historic tariffs. However, a quarter of developing nations remain poorer than pre-pandemic levels, highlighting a widening global economic divide.