Mutual Funds (UA-220086359-1)

US Economy Is Slowing From June

New orders in US Economy is slowing in June, which is caused By Monetary Policy.

Institute Of Supply is saying that employment in factories are coming down rapidly.

Consumer is spending less b’coz all are worried about recession. US GDP will be contracting in second quarter also.

Investment spending is also weaking which shows that US economy is slowing down.

Reuters had predicted that the manufacturing index will fall to 54.9%, which shows the shifting from manufacturing to service sector is taking place.

Computer and electronic products, machinery, transportation equipments, petroleum and coal products, food and chemical products registered moderate to strong growth.

Fed had increased the interest rate by 75 bps in June. We expected 75 bps hike in July, too.

New order sub-index had dropped to 49.2% from 55.1% in May, 2022.

Food producers are getting low orders, machinery producers are having softening of orders from now onwards.

Manufacturing sectors are having backlog orders, which keep the company moving.

Walmart and Target is facing consumer order crisis whereas ISM report says consumer is not having enough consumer goods at home.

Apparel, leather and allied products are facing low orders.

Supplier deliveries has been reduced to 57.3% from 65,7%, which was the peak in May 2022.

Inflation – prices paid by manufacturers had been reduced to 78.5% from 82.2% in May, 2022.

Factory employment are declining to 47.3% from 49.6%, even Tesla is planning for a layoff.

Next month we see that employment data will see a decline.