3 years ago

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Another sign of economic contraction we are seeing now manufacturing in the United States has started contracting for the first time since May of 2020.

As we know, the Federal Reserve is looking for signs of an economic slowdown as a leading indicator of inflation coming down. This fits the bill. Output from manufacturing weakened because of a third straight month of shrinking orders.

In fact, this measure has fallen in five of the last six months and is now below 50. 50 is gauged as the threshold between an expansion economically speaking, and a contraction. This is the first time it's happened since May of 2020.

Timecodes
00:00 Manufacturing Starts Contracting in the U.S.
01:00 Classic Boom Bust Cycle
03:31 Employment Levels Shrink Especially in Small Business
06:48 Incompetence or Malevolence

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#Manufacturing #Contraction

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