Friday, January 2, 2015

Global economy still fragile; UK new consumer loans at 7-year high; Breaking bad work habits

1 Global economy still fragile (Khaleej Times) The global economy ended 2014 in a fragile state as factories struggled to maintain growth across Europe and Asia, business surveys showed, adding to pressure on central banks to implement more stimulus.

Ebbing price pressures across the continents offers room for the People’s Bank of China and the European Central Bank to do more to drive up inflation and support growth. “Growth really does appear to be stalling based on these indicators so certainly the pressure is on,” said James Knightley, senior global economist at ING. Eurozone manufacturing concluded last year on a subdued note as output, new orders and employment all recorded sluggish growth.

Markit’s final December manufacturing Purchasing Managers’ Index stood at 50.6, down from an earlier flash reading of 50.8 but beating November’s 17-month low of 50.1. That is above the 50 mark that separates growth from contraction, but there was little sign of any improvement this month.

British manufacturing expanded at a much weaker pace than expected in December, suggesting its contribution to the economic recovery ebbed further in the final months of 2014. The Markit Economics final index of US manufacturing decreased to an 11-month low of 53.9 in December from 54.8 a month earlier, the London-based group.

China’s massive factory sector looked to have sputtered in December. Indian manufacturing activity expanded at its fastest pace in two years in December as new orders flooded in and factories kept price increases to a minimum. In South Korea, consumer prices grew at the slowest clip in more than 15 years in December, opening the door for further rate cuts there.


2 UK new consumer loans at 7-year high (Hilary Osborne in The Guardian) Consumer helplines have sounded a warning after Britons ran up their highest level of new debt in November for nearly seven years, with the month’s borrowing on credit cards, loans and overdrafts hitting more than £1.25bn.

National Debtline and StepChange said the figures from the Bank of England showed a worrying rise in consumers’ reliance on credit, and warned they expected a rush of people seeking help when the first credit card bills of the year started to arrive. Banks and credit card companies have been jostling for business: loan rates have plummeted while balance transfer deals on credit cards have become increasingly generous.

The £150bn UK credit card industry is to come under investigation this month by the Financial Conduct Authority over accusations of aggressive marketing after the watchdog suggested it had been pushing “payday loans with plastic”.

The £1.25bn net increase in unsecured borrowing during November was the biggest rise since February 2008, when Northern Rock was nationalised as the credit crunch took hold. It was the third month out of five that consumers had taken on more than £1bn of new debt. The Bank of England said over the course of three months unsecured lending had grown at its most rapid pace since October 2005, and in November was up 6.9% compared with November 2013.


3 Breaking bad work habits (Belo Cipriani in San Francisco Chronicle) Sometimes, recognizing bad behavior at work is very easy while in other cases it is not. For example, if you want to become more productive at work, and if stress is what is keeping you from performing at your optimal best, no matter what new software you add to your routine, without addressing the stress first, becoming more productive may become an unattainable goal.

So, as you reflect on what’s truly triggering the behavior you want to improve on, keep in mind that changing a behavior isn’t always easy and often takes a lot more than just will power. While some say that it takes a few weeks to alter a behavior, the reality is that a couple of weeks to change something someone has been doing for a long time may not be an accurate window for everyone.

One of the reasons why people drop their New Year’s resolutions within the first two months of the year is because they set an unrealistic time period for themselves to complete a major change.

Getting rid of a behavior isn’t easy and one of the best tactics may be to replace the bad behavior with a good one. For instance, if you want to cut back on your social media usage at the office, going for a short walk or listening to a song when you get the urge to post an update can help with shifting your focus away from the impulse.

And if the first behavior you replace the bad habit with doesn’t work for you, try others out. Creating new behaviors takes a lot of dedication, but with some coping tactics and a realistic time window, reaching your goals may not be as hard as you had imagined.

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