The Global Economy Is Clearly Slowing Down

Two critical data points on the economy came in today and both were disappointing. Purchasing Manager Indicators from the US and China have clearly peaked and are turning down, while US Nonfarm Payrolls delivered a huge disappointment.

Possible causes: Covid Delta variant outbreak changing behavior, higher inflation readings everywhere, and central banks tightening policy in Russia, Brazil, Norway, Korea and Mexico are good candidates. Perhaps the Fed draining $1 trillion in market liquidity is also having an impact.

Let's hope it doesn't get worse. What do you think?

Robert Lloyd, CFA®

Chief Investment Officer

Lloyds Intrepid Wealth Management

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