The Boom Turns Into A Bust – Here are 14 Signs That The U.S. Economy Is Steadily Weakening
The Boom Turns Into A Bust – Here are 14 Signs That The U.S. Economy Is Steadily Weakening by Michael Snyder for The Economic Collapse Blog
There should no longer be any doubt that the U.S. economy is slowing down, but most Americans still don’t realize what is happening because the major news networks are completely focused on the endless impeachment drama that is currently playing out in Washington. And without a doubt that is important, because it threatens to literally rip our entire nation in two. But meanwhile, economic activity has taken a very ominous turn. Hiring is slowing, consumer confidence is plunging, defaults on auto loans are rapidly escalating, the “transportation recession” continues to get deeper and it appears that the housing bubble is popping. Everywhere we turn, there are signs of economic trouble, and many are deeply concerned about what this will mean for us as we head into a pivotal election year in 2020.
Not since the last recession have we seen numbers this bad. The “mini-boom” that we witnessed for several years has now turned into a “bust”, and very tough times are ahead.
The following are 14 signs that the U.S. economy is steadily weakening…
#1 U.S. business hiring has fallen to a 7 year low.
#2 Consumer confidence in the United States has now declined for 3 months in a row.
#3 Defaults on “subprime” auto loans are happening at the fastest pace that we have seen since 2008.
#4 The percentage of “subprime” auto loans that are at least 60 days delinquent is now higher than it was at any point during the last recession.
#5 Vacancies at U.S. shopping malls have hit the highest level since the last recession.
#6 Destination Maternity has announced that they will be closing 183 stores as the worst year for store closings in U.S. history just continues to get worse.
#7 The Cass Freight Index has now fallen for 10 months in a row.
#8 U.S. rail carload volumes have plunged to the lowest level in 3 years.
#9 In September, orders for class 8 heavy duty trucks were down 71 percent.
#10 Tesla’s U.S. sales were down a whopping 39 percent during the third quarter of 2019.
#11 The bad news just keeps rolling in for the real estate industry. Last month, existing home sales in the United States declined by another 2.2 percent.
#12 New home prices have fallen to the lowest level in almost 3 years.
#13 According to one recent report, 44 percent of all Americans don’t make enough money to cover their monthly expenses.
#14 A recent survey found that more than two-thirds of all U.S. households “are preparing for a possible recession”.
All over the country, economic activity is slowing down, and this is hitting many small businesses particularly hard.
In Wisconsin, one aluminum firm “has seen bookings plunge by 40 percent” and was forced to lay off workers as a result…
Sachin Shivaram, the chief executive of Wisconsin Aluminum Foundry, started to worry this summer when orders for his brake housings and conveyor belt motors first grew scarce. Within weeks, what began as mild concern snowballed into a business drought that has seen bookings plunge by 40 percent.
In August, Shivaram, 38, reluctantly laid off two dozen workers, hoping to recall them when the outlook improved. It hasn’t.
“Things are not good. We didn’t anticipate this level of deterioration,” he said. “Orders are down across the board.”
Of course there are hundreds of other examples just like this one.
As times get tougher, many U.S. consumers are increasingly turning to debt to help make ends meet.