The $1trn infrastructure bill proposed by President Biden passed last week in the US Senate. After months of negotiations, it was quite a coup for Biden, who said bipartisanship is not dead.
Meanwhile, Senate Democrats have unveiled a $3.5trn budget plan for tax credits and grants to encourage clean energy manufacturing and transportation.
Inflation Figures Rise In The US
Inflation figures from the US rose by 0.5% month-on-month to reach 5.3% year-on-year, or 0.4% and 4.3% respectively for core inflation (excluding food and energy). Core inflation has become stickier and transportation costs are rising even further. This is especially noticeable amongst shipping costs.
Between last year’s Covid variants, this year’s Delta variant and a lack of investment, ports are facing challenges. For example, China partly shut its Ningbo-Zhoushan port, the world’s 3rd busiest, due to the Delta variant spread. Covid has also highlighted the need for investment in ports due to how much they’ve been impacted.
The Week That Was…
In the US, the Democrat-controlled Senate passed a $3.5TN budget plan that would address climate change and launch several, new domestic social programmes, whilst in the UK, the economy grew by a quicker-than-expected 1.0% m/m in June aided by the healthcare sector and the first full month of service for hospitality.