As we have been continuing to warn clients; the US continues to show more weakness and we believe more is to come. Further red flags came from US manufacturing and a slowdown in construction spending. Combine this with GDI turning over and an indebted consumer and a storm is likely to be brewing. In this subscriber/private client only article we delve into the details:
U.S. manufacturing experienced a contraction in August. A continued decline in new orders and a rise in inventory suggest that factory activity may remain sluggish for some time. The Institute for Supply Management (ISM) released a survey on Tuesday indicating that manufacturers faced higher input prices last month. Despite this, the survey did not alter expectations that the Federal Reserve will initiate a 25-basis-point interest rate cut this month as part of its long-awaited easing cycle.
Conrad DeQuadros, senior economic advisor at Brean Capital said:
"Input price pressures increased modest ...
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