Posted originally on the conservative tree house on July 22, 2022 | Sundance
Purchasing managers for both goods and services are reporting a strong contraction in orders. The decline in goods has been subtle up to this point, with June and July now reflecting a significant change to the negative. More concerning is the severe change on the service side.
Contraction within business activity is now happening in almost all sectors of the economy.
Bloomberg Reports – US business activity contracted in July for the first time in more than two years as manufacturers and service providers signaled sluggish demand that only adds to heightened recession anxieties.
The S&P Global flash composite purchasing managers output index slid 4.8 points to 47.5, the weakest reading since May 2020, the group reported Friday. Outside of the early months of the pandemic, the July figure is the weakest in data back to 2009. Readings below 50 indicate contraction.
[…] “The preliminary PMI data for July point to a worrying deterioration in the economy,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
“Manufacturing has stalled and the service sector’s rebound from the pandemic has gone into reverse, as the tailwind of pent-up demand has been overcome by the rising cost of living, higher interest rates and growing gloom about the economic outlook,” Williamson said.
Similar results were seen in Europe. The group’s index of activity in the euro area unexpectedly shrank for the first time since early 2021. Output worsened among manufacturers, while growth in the service sector came close to stalling. (read more)
Keep in mind while this business contraction is happening, the policy makers in the U.S. and Europe are still using the talking points that “demand is driving inflation” – and they are *not* talking about energy demand.
The Federal Reserve and Central Bankers policies are constructed around a false premise that consumer demand for goods and services is the cause of inflation. The premise is a lie, they know it is a lie, and they know the people closest to the economy know it is a lie. Yet they continue to lie because the multinational corporate media is part of the narrative engineering.
The policies from western government, political, fiscal and monetary, are based on a lie to create a false justification. It cannot be overstated how dangerous this is, when the reality of what they are manipulating comes crashing into the unavoidable consequence of what they have created.