The good news is that the services side of the economy, which contributes about 75% of US GDP, is not weakening. And the slowing in manufacturing was expected. As mentioned on Aug. 1, the factory sector may be curbed until the November presidential election and the path of US rate cuts becomes clearer. After that, orders are expected to re-emerge -- reversing the current slumber. And as mentioned earlier, inflation is casting a shadow via wages.
Alyce Andres is a reporter for Bloomberg News and contributor for the Markets Live blog based in Chicago.
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