Global Recession Spreads, European Factory Activity Contracts in July, Japanese Factory Activity Also Drops
In addition to the contraction in South Korean manufacturing announced last night, European manufacturing and factory activity is also contracting with less output, higher buildup of inventory and fewer orders for finished goods. The global recession is being measured fast and furious.
Every economic outcome is connected to a purposeful decision by the leaders of western industrialized nations to follow the Build Back Better climate change agenda. Higher energy costs, an outcome of the collective policy to stop new production of coal, oil and gas, which has transferred into higher food prices, farm prices, gasoline prices, heating and cooling prices as well as electricity rates, is forcing consumers to stop purchasing non-essential products.
The sale of durable goods collapsed in the first half of this year; however, no policymakers or bankers wanted to admit it and they kept saying there was an excess of demand. Now, with fewer customers for durable goods in the market, global manufacturing and factory outputs are dropping fast. Eventually the central planners are going to have to admit their pretended demand does not exist.
While there is a natural lag in the activity, the rate of factory contraction will be proportionate to rate of the drop in demand. Meaning we have only just begun to see the manufacturing decline that lags a few months behind consumer activity.
LONDON, Aug 1 (Reuters) – Manufacturing activity across the euro zone contracted last month with factories forced to stockpile unsold goods due to weak demand, a survey showed on Monday, adding to concerns the bloc could fall into a recession.
S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) fell to 49.8 in July from June’s 52.1, just ahead of a preliminary reading of 49.6 but its first time below the 50 mark separating growth from contraction since June 2020.
An index measuring output, which feeds into a composite PMI due on Wednesday and seen as a good gauge of economic health, sank to a more than two-year low of 46.3. In June it was 49.3.
“Euro zone manufacturing is sinking into an increasingly steep downturn, adding to the region’s recession risks. New orders are already falling at a pace which, excluding pandemic lockdown months, is the sharpest since the debt crisis in 2012, with worse likely to come,” said Chris Williamson, chief business economist at S&P Global. (read more)
The WEF directed politicians are trying to bring energy demand down to match the energy shortage they have created. The various western government leaders, Biden included, want/need a recession to drop energy demand. The central banks and federal reserve are supporting the policymakers by driving up interest rates into the recession.
The combined effort leads to a shrinking of the global economy.
By lowering the economic activity and forcing their western nations into a joint collaborative and intentional recession, the central planners hope to offset the inflation they created by blocking coal, oil and gas production. By intentionally collapsing demand, the prices of excess non-essential goods will drop; however, there will be no one to purchase those goods at any price because global employment in a global recession is tenuous at best. This is the spiral they are trying to manage.
TOKYO (Reuters) – Japan’s manufacturing activity expanded at the weakest rate in 10 months in July, as pressure from rising prices and supply disruptions hurt output and new orders, suggesting a solid post-pandemic economic recovery is still some way off.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) dipped to a seasonally adjusted 52.1 in July from the previous month’s 52.7 final.
That marked the slowest pace of growth since September last year, and was slightly lower than a 52.2 flash reading.
[…] Manufacturing activity suffered from contractions in output and overall new orders as well as a slower expansion in the backlog of work, the PMI survey showed.
[…] But a government official also warned downside risks for output remained as parts supply delays lingered. That is one of many reasons why the Bank of Japan remains resolutely committed to its ultra-low policies despite a global trend of rising interest rates to fight rampant inflation. (more)
It’s incredible how they various western leaders and bankers can still say there is too much demand, when every single economic indicator clearly shows that all consumer purchasing of non-essential goods and services has stopped.
We are seriously looking at a future employment scenario that might be as bad as it was during the economic lockdowns in the pandemic. This time all of the unemployment will have been created by intentional climate change policy.
These ideologues are seriously disconnected from the pain they are inflicting.
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