CDZ Global PMI Expected to go into Contraction This Week

william the wie

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Nov 18, 2009
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While certainly not carved in stone, particularly as to date a lot of trendlines are taking off.

Purchasing managers are buying less for the same amount of output:

Acquisition costs are decreasing. Most famously with fracking but material science is reducing the costs of refining in most materials.is going down

Waste is decreasing due to automation with 3D printing being the sexy example but all forms of automation reduce waste costs.

Composite materials like plywood are getting cheaper to make and they come in larger varieties like graphene.

Substitution is also a big cost saver like titanium golf clubs or optical frames.or using kevlar instead of steel.

With China undergoing a slow motion crash that is creating unintended ghost towns at a rapid rate as robots replace workers there. India is still deregulating so it will not take up the slack from China for 2-3 years.

When the PMI number for the world goes below 50 panic will strike but not necessarily here in the US. Comments?
 
Increase one's position in service sector financial instruments. Decrease one's position in manufacturing sector instruments. That is if one feels the Chicago PMI is relevant and one is so risk averse that one wants to get out now rather than waiting to see what may happen in June.
 

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