The US economy is heading towards its own death spiral as new metrics indicate slow progress on the vertical. With the budding BRICS and ASEAN alliances spearheading the multipolar currency agenda, the US dollar continues to invite new foes. At the same time, the US economy’s debt metrics are also levying heavy pressure on the vertical, adding more fuel to the fire.
The US Economy Is Slowing: Details
Per the latest assessment uploaded by the Kobeissi Letter on X, the US economy is showing signs of gradual decay. For instance, the snippet uploaded by the expert on X outlined several markers indicative of a slowing US economy.
The platform first outlined the US service activity metrics, indicating how the sector contracted in June “at the fastest pace” post-pandemic. The US service activity metrics denote the health of the service sector.
At the same time, the platform pivoted its attention to display the latest ISM services PMI Index. The index has declined by five points, stabilizing at 48.8 rather than the expected 52.5. The ISM index, in particular, measures the performance of service-based companies. It also caters to the macroeconomic part of the vertical, which includes displaying the overall health of the sector.
The forum was quick to outline how such stark metrics declines had earlier happened during the time of grave recessions. With such declining metrics appearing on the cards again, the forum accentuated the fact that the US may soon invite a wave of recession for its citizens to encounter and battle with.
“More evidence of a slowing US economy: US service activity contracted in June at the fastest pace since the 2020 pandemic. The ISM Services PMI index fell by 5 points to 48.8, missing expectations of 52.5 points. This was primarily driven by an 11.6-point decline in the business activity index to its lowest level since April 2020. In the past 30 years, such a service activity drop happened only during recessions. Furthermore, new orders shrank for the first time since 2022. Data is getting weaker.”
US Labor Market Data Is Shrinking
The platform further went ahead to explain the latest labor market data metrics. The metrics have shrunk in the past few years, adding more pressure on the US economy. Per the Kobeissi Letter, the labor market data is also displaying signs of weakness. The platform noted how massive downward revisions in jobs have become the norm now, a practice that was rare a few years ago.
“The labor market is the latest part of the macroeconomy to begin displaying weakness. Large downward revisions in job numbers have become the norm. The stimulus-era economy is beginning to slow down.”
If the metrics continue to plummet, it could jeopardize the prestige of the US economy as a whole. The data set unveiled is indicative of several blanks that are in dire need of attention to secure US economic status.
Moreover, the US dollar is also attracting international foes, adding more mayhem in the process. With BRiCS and ASEAN nations working on their own currency narratives, the USD could potentially be dethroned, putting more pressure on the US economic strata.
