You can't say we weren't warned. As reported over a month ago, the biggest drag on recent consumer spending was auto sales.
And this is happening as Automaker inventories are at their second highest in 23 years. If sales are collapsing, then the violent spike in relative inventories as seen in 2008 is not far away.
Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke.
OPEC will hold its semi-annual meeting tomorrow. All eyes will be on Vienna. But, when it comes to oil prices, the “golden constant”, not OPEC, rules the roost.
Following a hope-strewn bounce in February and March, US Construction Spending plunged 1.8% in April (massively worse than the expected 0.6% rise). This is the biggest monthly drop since January 2011 as while religious construction surged 9.6%, Commercial, Healthcare, and Education construction all plunged with Communications and highway building collapsing 7.7% and 6.5% respectively. We ares ure wether will be blamed but the 1.5% drop in residential construction is rather notable for an April - it is the weakest April since 2009.
Following China's drop, Japan's plunge, and Brazil's crash, US Manufacturing PMI slipped once again to 50.7 - its weakest since September 2009 amid " subdued client demand and heightened economic uncertainty." New orders bounce is over as it fell to its weakest since Dec 2015 and worse still input costs are surging to 9 month highs as employment suggest payrolls will remain under pressure. ISM Manufacturing data improved marginally - leaving 50% of the last 10 months in contraction and 50% in expansion.
Submitted by Mike Krieger via Liberty Blitzkrieg blog,