RE:RE:Chicago PMI down for 9 months straight at 40 nowWe are in a recession already.. Every company has higher borrowing costs on their credit facilities, lines of credit and mortgages etc.etc ...
Every company is dealing with 15% inflation as is every consumer, every govt , every employee etc.etc.
Most companies cannot pass on their higher costs to the consumer, so their profits start to shrink... Their employees want raises and usually get them, so higher labour costs also squeeze their profits.. Governments need more tax money and so they raise taxes on these companies which again shrinks the profits...
When all this is happening simultaneously, then companies make less money, they also cut back on growth plans, expansion or re-investment in their futures... As this continues, they will lay off thousands of workers to be able to survive the coming hard economic times..
America's manufacturing sector has been contracting for almost 1 year now.. This means nobody is buying their manufactured products.. The US economy is obviously very sick...
The US is headed for a gigantic depression...