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Daily Update — August 12, 2026

Fading Emerging Market Confidence; US Southeast AI-driven Power Demand; and Scaling Private Credit

Today is Wednesday, August 12, 2026, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.

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Economy

Global outlook marred by further slide in emerging market business confidence

The global growth outlook remains well below historical standards, even as overall business confidence improved in July from May. The low growth expectations were influenced by widespread uncertainty, with concerns over the Middle East war, Russia-Ukraine war and US tariff policy continuing to weigh on sentiment, according to the latest Purchasing Managers’ Index surveys compiled by S&P Global Market Intelligence.

 

Emerging market optimism has further diminished in July to one of the lowest levels recorded in the surveys. China, Russia and Brazil reported particularly low business confidence, while the improved sentiment of India, seen earlier in 2026, waned. By contrast, growth expectations for developed economies have rebounded.

Data Centers

Data centers' AI boom spurs new natural gas power plans in the US Southeast

 

As AI and cloud computing accelerate data center development across the US, the electricity demand of these facilities is projected to rise to 183 gigawatts by 2030 from 64.4 GW in 2025, according to 451 Research by S&P Global. Growth is becoming more evident in the US Southeast, where 173 data centers are planned over the next five to six years, representing 9.6 GW of additional electricity demand, based on S&P Global Energy estimates.

Southeastern utilities such as Entergy are responding to this demand with proposals to build natural gas power plants. Among other things, Entergy plans to invest $12.9 billion in seven new natural gas plants capable of producing 5.2 GW of electricity for Meta's data center project in Louisiana.

Private Markets

Private Credit at Scale: Building the Operational Foundation for the Next Phase of Growth


The growth story of private credit, which has become a core allocation for institutional investors worldwide, is fast becoming an operational story, with private credit managers increasingly focused on building operational capabilities to support larger and more complex portfolios.

 

As deal complexity, transaction volumes and reporting requirements increase, traditional operating models built on spreadsheets, emails and disconnected systems can no longer support the demands of the private credit environment. The next phase of growth will be shaped by the capital entering the market and the operational infrastructure that enables firms to deploy that funding effectively, according to S&P Global Market Intelligence.

In case you missed it

  • The US Federal Reserve’s potential interest rate hikes in the second half will likely reduce new mortgage demand and increase borrowing costs in the US public finance housing sector, S&P Global Ratings said.
  • Cambodia is poised to surpass 1 million metric tons of milled rice exports in 2026, with the Philippines emerging as a key growth market for its shipments.
  • US bank stocks extended a recent bull run, with the S&P US BMI Banks index delivering a one-month total return of 4.5% in July, compared with a return of negative 0.1% for the S&P 500.

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