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82 Percent Say Economy “Getting Worse”
The American Research Group’s monthly economic poll revealed that 82 percent of respondents believe the economy is “getting worse,” a record high. There were no respondents who thought that the national economy is improving, compared to 18 percent in August.
Looking ahead one year, 42 percent of those surveyed said they believed the national economy would improve, 27 percent said it would remain the same, 13 percent said it would be in worse shape and 18 percent were undecided.
According to the group, no respondents reported that their household financial situation had improved in September, compared with 19 percent in August. More than half, or 56 percent, reported that their finances were staying the same and 42 percent said they were getting worse.
The president’s approval rating also tanked — 76 percent of U.S. consumers disapproved of the way he was handling his job. When it came to how he was handling the economy, 78 percent disapproved. These ratings tied previous record lows. The group surveyed 1,100 people from September 16 to 19, 2008. The margin of error was 2.6 percentage points.
U. S. Manufacturing Shrinks
Manufacturing contracted in August as the index of national factory activity (PMI) registered at 49.9 percent, which is 0.1 percentage point lower than the 50 percent reported in July, according to the Institute for Supply Management (ISM). A reading above 50 percent indicates that the manufacturing economy is generally expanding; a reading below 50 percent indicates that it is generally contracting. Economists had expected a PMI of 50 for August, based on the median value offered by those who participated in a Reuters poll.
U.S. Imports Hit Record HighPolished diamond imports to the U.S. hit a new record high for July at $2 billion, an increase of 21 percent from the previous year. Polished exports rose 56 percent to $1.3 billion. Rough diamond imports rose 41 percent to $97 million and rough exports rose 24 percent to $41 million.
For the seven months ended July 31, polished diamond imports rose 18 percent to $12.4 billion and polished exports increased 49 percent to $9.1 billion. Rough imports for the period rose 11 percent to $546 million, while rough exports fell 11 percent to $252 million.
Belgium’s Diamond Trade DeclinesBelgium’s polished diamond exports fell 16 percent to $404.7 million in August 2008, according to the Antwerp World Diamond Centre (AWDC). The country’s net polished exports dropped further into negative territory at $524.6 million, compared with negative $227.6 million one year ago.
Rough diamond imports decreased 18 percent to $664.6 million and rough exports rose 9 percent to $937.3 million. Net rough imports — imports minus exports — fell into negative territory at $272.7 million, compared with negative $54.1 million one year ago.
From January through August, Belgium’s polished exports increased 22 percent to $8.4 billion, while polished imports rose 28 percent to $8.3 billion. Net polished exports for the period plunged 71 percent to $110.2 million. Rough imports rose 7 percent to $8.2 billion in the period and rough exports grew 17 percent to $7.9 billion. Net rough imports sank 72 percent to $245.9 million.
India’s Polished Exports UpIndia’s polished diamond exports increased 7 percent to $1.4 billion in August 2008, according to data published by the Gem & Jewellery Export Promotion Council (GJEPC). Polished imports rose 23 percent to $591.9 million, as net polished exports — exports minus imports — fell 3 percent to $831 million. India’s total gem and jewelry exports increased 8 percent to $1.9 billion for the month.
Rough diamond imports to India declined 3 percent to $664.5 million and rough exports soared 43 percent to $68.1 million. Net rough imports — rough imports less exports — dropped 6 percent to $596.4 million. India’s net diamond account — net polished exports minus net rough imports — rose 7 percent to $234.6 million in August.
For the first eight months of the calendar year, the country’s polished exports increased 25 percent to $10.6 billion, while polished imports grew 110 percent to $5 billion. Net polished imports fell 7 percent to $5.7 billion. Rough imports rose 14 percent to $7.5 billion for the period, while rough exports increased 40 percent to $559 million. Net rough imports grew 12 percent to $7 billion.
Israel’s Polished Exports DecreaseIsrael’s polished diamond exports fell 55 percent to $207 million in August compared to the same period of last year, the country’s Ministry of Industry, Trade and Labor reported.
Polished imports were flat at $312 million as net polished exports — exports less imports — fell to a $166 million deficit, compared with a positive $66 million in August 2007.
Rough imports fell 6 percent to $373 million, while rough exports grew 10 percent to $277 million. Net rough imports — rough imports minus exports — for the month dropped 34 percent to $96 million.
For the year to date, polished exports increased 3 percent to $4.8 billion and polished imports rose 16 percent to $3.1 billion. Net polished exports fell 14 percent to $1.7 billion. Rough imports increased 10 percent to $3.6 billion and rough exports rose 22 percent to $2.8 billion. Net rough imports declined 19 percent to $847 million.
Japan’s Polished Imports RiseJapan’s polished diamond imports rose 0.9 percent to $74 million in July, according to data compiled by the J Club Inc. Diamond imports from India fell 14.7 percent to $25.6 million, but imports from all other major markets grew during the month. Imports from Belgium rose 8.8 percent to $22.9 million, while imports from Israel jumped 41 percent to $11.9 million. For the first seven months of the year, Japan’s polished imports decreased 8.1 percent to $490.3 million.
Australia’s Diamond Production Down
Australia’s diamond production fell 30.5 percent to 3.1 million carats during the three months ended June 30, 2008, according to the Australian Bureau of Agricultural and Resource Economics’ (ABARE) “June Quarter 2008 Minerals Statistics” report.
Production dropped as a result of variability in mine production at Rio Tinto’s Argyle mine in Western Australia, where the operation is approaching the end of its life span. Production at Argyle was also affected by cyclone activity in the March quarter, which increased water levels at the mine.
Article from the Rapaport Magazine - October 2008. To subscribe click here.