That slow grinding creak you hear in the background; that’s the U.S. economic engine running without oil and beginning that slowdown phase just before it stutters and stalls completely. Alas, the pretending continues…
As noted by the Wall Street Journal, an economic gaslighting institution with a central mission to maintain pretenses, “business surveys show U.S. factory activity declined in December, the Institute for Supply Management and S&P Global both said this week. Separately, S&P Global said Thursday that U.S. services-sector businesses reported a decline in output for the third month running in December.” This comes as “U.S. imports dropped more, by 6.4% on the month, as Americans cut back on holiday-related purchases, including items from other countries such as computers and autos.”
Keep in mind, November retail sales—which included consumer spending at stores, online and at restaurants—fell 0.6% from the prior month for their biggest decline of 2022, according to the Commerce Department. Manufacturing output declined in November as well, the Fed reported, while U.S. home sales fell for a record 10th straight month.
Into this mix of economic metrics, driven by a collapse in disposable consumer income and high energy prices, now we begin to see the number one business expense being curtailed.
(Market Watch) […] Amazon.com Inc layoffs will affect more than 18,000 employees, the highest reduction tally revealed in the past year at a major technology company as the industry pares back amid economic uncertainty.
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