The “R” word – recession – got uttered a lot this week. The stock market swooned after an “inverted yield curve” in the bond market.
That’s considered an indicator that a recession is on the way. The U.S. government is paying more to buyers of its 2-year-bond than its 10-year notes. Essentially, it’s a sign of concern about the economy’s short-term prospects. (CLICK HERE to read a more detailed explanation from The Washington Post.)
For manufacturing, there have been indicators of economic concern for a while now.
First up, the U.S.-China trade war isn’t ending soon. The two sides had been trying to negotiate ways to alleviate trade disputes. However, the two nations appear to have settled in with no end of the conflict in sight.
Moreover, other trade fights may yet occur that would be a drag on the economy. The U.S., for example, still is studying whether to levy tariffs on imported vehicles.
The Trump administration said in May that… (click here to read the whole story on AdvancedManufacturing.org)