Heading Into Recession, There Is A Huge Excess Of Real Private Inventories
Inventory data from BEA via St. Louis Fed, chart by Mish
Wholesale inventories are surging as retail inventories flatten. One way or another and perhaps both, there is huge problem somewhere.
A Big Trucking Red Flag
Another fallen flag… trucking fleet calls it quits citing difficult operating environment https://t.co/Kj4KuvJpxN
— Craig Fuller 🛩🚛🚂⚓️ (@FreightAlley) November 29, 2022
Composite PMI
US Composite PMI Suggests the Economy is On the Verge of Recession
— Mike "Mish" Shedlock (@MishGEA) November 25, 2022
Private sector demand is weakening, signaling recession. @FreightAlley
As a side benefit though, supply chain problems are decreasing.https://t.co/atOC8BWwAR
Manufacturing Has Peaked This Cycle
(Click on image to enlarge)
ISM data provides strong evidence that Manufacturing Has Peaked This Cycle.
The only major component of the Manufacturing PMI® not in contraction is production. That will not last long given the collapse in domestic and export orders coupled with the backlog of orders in steep contraction.
Also, note that the US Composite PMI Suggests the Economy is On the Verge of Recession
Add a huge inventory problem to this toxic mix.
Not to worry, Fed Chair Jerome Powell is still Preaching Soft Landing.
More By This Author:
Manufacturing Has Peaked This Cycle, 8 Of 11 ISM Components In ContractionThe Fed Is Hiking At The Most Aggressive Pace Ever (And What It Means For Housing)
The Budget Deficit Big Lie And When Will Soaring Debt Finally Matter
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