Global PMIs crater

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Things to note include:

  • Inventories to new orders ratio is a great leading indicator for profits. Yuk!
  • The great goods deflation bust has begun.
  • But, it has not yet reached employment so central banks will keep tightening.
  • A global DM recession has begun and a trade shock is now coming to EM as destocking takes hold of the supply chain.

Goldman with a handy wrap.


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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.