You Know, We Might Be Looking At Another European Recession Already

Just to give us a bit more information on how well the European Union works. It’s entirely possible that we’re looking at another recession over there already. Yes, fair enough, this is a couple of indicators, no more, but, you know, some of them matter.

And wouldn’t it be just a glorious justification of the euro if it managed to go back into recession without having really left the last one?

Germany’s manufacturing sector remained stuck contraction in May, according to the latest PMI® data from IHS Markit and BME.

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US Manufacturing PMI Falls – Really, Not An Important Number

A PMI is a useful way of predicting how the economy is going to be doing a couple of months from now. The US PMI for manufacturing has fallen – that means disaster ahead, right? Well, no, not really, it’s actually a pretty unimportant number. Because manufacturing is a pretty unimportant sector of the economy.

Yes, yes, I know, that’s not what everyone thinks but it’s true all the same. This is of mild interest but it’s not important:

U.S.

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How Excellent, Manufacturers Are Stockpiling In Fear Of A No Deal Brexit

We’re told this news so that we may shiver in fear at the prospect of letting go of Nanny Europa – manufacturers are stockpiling goods in fear of a no deal Brexit and reversion to WTO terms. The truth is that this is good news on two counts, one at the system level and the second as more of a detail about current circumstances. That system point is, hey, great, aren’t we lucky to be using an economic system which has such self-correcting mechanisms built in?…

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UK Services PMI Bounces – That Economy Out There Is Doing Just Fine

There are any number of economic statistics out there for us to take note of. Some of them are usefully important – an inflation rate of 50% a month is a signal of something we might want to take note of – and some of them aren’t – inequality before the interaction of the tax and benefits system is useless as a policy guide. One that is useful is the series of varied purchasing manager indices.…

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