The US economy is showing clear signs of a slowdown, fueling concerns about a potential recession.
The Federal Reserve is raising interest rates to slow growth as it seeks to curb sustained high inflation, as well as consumer prices, which are rising at the fastest pace in more than 40 years.
The employment market remains healthy, but consumer spending, which drives most of US economic activity, is losing momentum.
The other eight indicators of the previous problem are:
1. Retail sales: According to the latest report from the Commerce Department, retail sales fell 0.3% in May and increased less than originally expected in April.
2. Consumer trust: June, University of Michigan Consumer Psychology Survey The lowest level in 70 years of historyAlmost half of the respondents say inflation is lowering their standard of living.
3. Housing market: Real estate demand is declining and new home construction is lagging behind. These trends could continue as interest rates rise, and real estate companies such as Compass and Redfin have fired employees in anticipation of a downturn in the housing market.
4. Startup funding: Investment in start-ups has fallen to its lowest level since 2019, down 23% to $ 62.3 billion in the last three months.
5. Stock market: The S & P 500 has fallen nearly 19%, the worst in the first half since 1970. From January. All sectors of the energy-exceeded index have declined since the beginning of the year.
6. Copper: Analysts see it as a measure of sentiment towards the world economy. Widely used in buildings, automobiles and other products, copper has fallen by more than 20% since January. Hit the lowest price in 17 months on July 1st..
7. Oil: Crude oil prices have risen this year due to supply constraints due to Russia’s invasion of Ukraine, but crude oil prices have begun to fluctuate recently as investors are concerned about growth. The price of Brent crude, the world’s oil benchmark, fell below $ 100 a barrel on Wednesday for the first time since late April.
8. Bond market: Long-term interest rates on government bonds are below short-term interest rates, a rare event that traders call a reversal of the yield curve. This suggests that bond investors are expecting a slowdown.
