Morgan Stanley’s Business Conditions Index Just Suffered The Biggest One Month Decline In History
Morgan Stanley’s Business Conditions Index Just Suffered The Biggest One Month Decline In History by Michael Snyder for The Economic Collapse Blog
We continue to get more indications that U.S. economic conditions are going to deteriorate rapidly during the second half of this year. Yesterday, I reported on a brand new survey which found that 69 percent of U.S. CFOs believe that a recession is coming “by the end of 2020”, and today we learned that Morgan Stanley’s Business Conditions Index has fallen dramatically. In fact, according to CNBC the sudden drop in the index was “the largest one-month decline on record”…
A reading of the economy from Morgan Stanley is signaling “June gloom.”
Morgan Stanley’s Business Conditions Index, which captures turning points in the economy, fell by 32 points in June, to a level of 13 from a level of 45 in May. This drop is the largest one-month decline on record and the lowest level since December 2008 during the financial crisis, according to the firm.
At this point, I really don’t see how anyone can possibly claim that the U.S. economy is doing well. We also just learned that U.S. unemployment claims have now risen for three weeks in a row, and the trade war is clearly beginning to take an immense toll on the economy.
This week, Walmart, Costco and hundreds of other companies jointly sent President Trump a letter that essentially begged him to end this trade war with China. The following comes from CNN…
More than 600 companies and industry trade associations — including Walmart, Costco, Target, Gap, Levi Strauss and Foot Locker — wrote to the White House urging Trump to remove levies on China and end the ongoing trade war.
“We know firsthand that the additional tariffs will have a significant, negative, and long-term impact on American businesses, farmers, families, and the US economy,” the companies said in the letter. “An escalated trade war is not in the country’s best interest, and both sides will lose.”
Of course this is exactly what I have been telling my readers for a long time.
There aren’t going to be any winners in this trade war, and anyone that suggests that there will be is just being delusional.
If there had been a quick resolution to the trade war, large corporations could have perhaps swallowed the increased costs that they are facing. But since it appears that this trade war will be with us for the foreseeable future, big companies are going to be forced to pass those costs on to consumers, and some top executives are openly admitting this…