USA Economy To Pick Up Second Half Of 2025
Image Source: Pexels
Trump has lowered the US dollar, this has allowed China to print.
Chart 1 : Favorable US dollar, interest rates, and corporate credit conditions lead the ISM PMI manufacturing activity. The first half of 2025 has seen CEOs sit on their hands while they wait for the TRUMP disruption to settle. These CEOs will roll the dice and produce more as they will see demand from sales orders in the second half of 2025 going into 2026. Just in time for the TRUMP midterm elections.
(Click on image to enlarge)
Chart 2 : The USA ISM PMI manufacturing index has a relationship with the Chinese 10 year bond rate (inverted). The Chinese boom and bust 10 year bond rate represents the effect of world demand for Chinese goods and the delayed effect on Chinese inflation. As in chart 1, the second half of 2025 and 2026 looks positive for USA manufacturing.
(Click on image to enlarge)
Chart 3 : The reason why Chart 2 works so well is because the boom and bust cycle of the Chinese 10 year bond rate is associated with the Bank of China money printing periods. More money printing is expected from the PBOC to try exit their current deflationary woes.
(Click on image to enlarge)
More By This Author:
Semi Conductors Ready To BounceMining Stocks Higher Into 2026 Mid Terms
Gold Warning Signal Just Fired
Note: All the charts have been built on readtheticker.com 'comparison' chart functionality.
Comments
