The World Is Slowing Down At An Alarming Speed, The Stock Market Is In An Extended Topping Process

via smh.com.au:

The manufacturing industry data from the US and Eurozone late last week confirms the view that the global economy is slowing at a disconcerting rate and appears to show the reversal of the US Federal Reserve Board’s monetary policies this year is warranted.

While the US purchasing managers’ index, or PMI, was still in positive territory manufacturing activity is slowing. In Germany and France it is actually shrinking, with Germany’s PMI showing its manufacturing sector is contracting at its fastest rate in nearly seven years.

The PMIs are based on surveys within the manufacturing and services sectors. Anything above 50 reflects a manufacturing sector that is growing. Anything below 50 says it is shrinking.

Manufacturing activity across the Eurozone is diminishing, as it has been in China, while in the US growth has slowed to its lowest rate in nearly two years.

When the Fed surprised markets last week, with a majority of its Open Market Committee members saying they were not expecting any rate rise this year and the committee announcing an end to its balance sheet reduction program in September, a global economic slowdown was one of the major factors cited for its increasingly cautious stance.

The manufacturing data in Europe and the US late last week says that one is developing, quite quickly.

Companies all across America are warning business is slowing down. Here are 6 you should pay close attention to.

  • Amazon, Nike, and Shake Shack are just a few US companies that have this quarter warned that growth is slowing.
  • Nike said in its third-quarter earnings report out Thursday that while its profits were robust its North American sales growth slowed.
  • A handful of notable US companies have warned of a slowdown as economic growth cools around the world.

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