The average for the big four (US/Europe/China/Japan) which correlates well with world PMI, also fell in June. It is now in recession (below 50%), almost as bad as during the Euro crisis in 2012. Except there is no crisis now. Or is there?
Tuesday, July 2, 2019
June PMIs show global recession
The ISM (Institute for supply management) and PMI (purchasing manager index) for the US fell again in June. The average of the two (the average reduces random month-to-month fluctuations) is shown by the green line in the chart below. Not as weak as 2016 or 2012, let alone during the GFC (global financial crisis) but nevertheless still heading south. If the trend continues, in another couple of months the green line will cross through the 50% "recession line".
The average for the big four (US/Europe/China/Japan) which correlates well with world PMI, also fell in June. It is now in recession (below 50%), almost as bad as during the Euro crisis in 2012. Except there is no crisis now. Or is there?
The average for the big four (US/Europe/China/Japan) which correlates well with world PMI, also fell in June. It is now in recession (below 50%), almost as bad as during the Euro crisis in 2012. Except there is no crisis now. Or is there?
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