U.S. Outlook: More signs of weakness in global production
We received more confirmation this week that global manufacturing activity in September continues to slow, though there are no clear signs, yet, of a global recession.
For more on this and what these signs of weakness may mean, see my full report. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on Sept. 25.Key observations:
- Producer prices are contracting steadily in Europe, Japan, China, and the United States.
- Delayed action from the Fed (on raising interest rates) should weaken the U.S. dollar and stabilize commodity prices, all else being equal.
- We are trimming our business investment forecasts for the next six quarters.
- Consumers will continue to drive moderate economic growth in the United States.