{"id":1566762,"date":"2022-07-22T15:19:05","date_gmt":"2022-07-22T19:19:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1566762"},"modified":"2022-07-22T15:19:13","modified_gmt":"2022-07-22T19:19:13","slug":"business-leaders-report-first-output-contraction-since-2020-as-consumers-get-pinched-by-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/business-leaders-report-first-output-contraction-since-2020-as-consumers-get-pinched-by-inflation\/","title":{"rendered":"Business Leaders Report First Output Contraction Since 2020 As Consumers Get Pinched By Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbusiness-leaders-report-first-output-contraction-since-2020-as-consumers-get-pinched-by-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1566762&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Executives are reporting the sharpest <a href=\"http:\/\/dailywire.com\/topic\/recession\">decline<\/a> in <a href=\"http:\/\/dailywire.com\/topic\/business\">business<\/a> activity since the spring of 2020, according to a Friday release from S&#038;P Global.<\/p>\n<p>S&#038;P Global\u2019s most recent <a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/52db97a5557c433d855b74a46c5ecff6\">Purchasing Managers\u2019 Index<\/a> (PMI), which tracks business leaders\u2019 reported changes in their companies\u2019 output, fell from 52.3 in June to 47.5 in July, with readings below 50 marking contraction territory. The downturn is occurring to a \u201cdegree not seen outside of COVID-19 lockdowns since 2009.\u201d<\/p>\n<p>\u201cThe downturn was led by a steep drop in service sector activity, though production at manufacturers also fell marginally, down for the first time in over two years,\u201d S&#038;P Global said. \u201cCompanies noted that weak demand conditions stemmed from severe inflationary pressures and hikes in interest rates, which have exerted further strain on domestic client spending. Foreign client demand also weakened, causing new export orders to fall for a second successive month.\u201d<\/p>\n<p>The Consumer Price Index (CPI) <a href=\"https:\/\/www.dailywire.com\/news\/retail-sales-surge-faster-than-expected-as-inflation-rattles-economy\">rose<\/a> 9.1% between June 2021 and June 2022, while the Producer Price Index (PPI) <a href=\"https:\/\/www.dailywire.com\/news\/producer-price-index-hits-11-3-in-another-dismal-inflation-reading\">rose<\/a> 11.3% over the same period, according to data from the U.S. Bureau of Labor Statistics. A recent <a href=\"https:\/\/www.dailywire.com\/news\/more-small-businesses-are-calling-inflation-their-single-most-important-problem\">poll<\/a> from the National Federation of Independent Businesses shows that 34% of small business owners are calling inflationary pressures their \u201csingle most important problem\u201d \u2014 the highest level since 1980.<\/p>\n<p>S&#038;P Global likewise said that businesses are facing \u201cupticks in input costs at suppliers, as fuel, transportation, raw material and wage expenses rose further,\u201d causing many businesses to raise the prices they charge consumers. Indeed, <a href=\"https:\/\/www.dailywire.com\/news\/here-are-the-products-making-your-wallet-lighter-as-inflation-hits-new-highs\">energy prices<\/a> have surged since the beginning of the year, while worker shortages driven by a decline in the <a href=\"https:\/\/www.dailywire.com\/news\/americans-continue-to-opt-out-of-the-workforce\">labor force participation rate<\/a> \u2014 the percentage of people who either have a job or are actively looking for one \u2014 have worsened inflation as businesses struggle to find employees.<\/p>\n<p>\u201cManufacturing has stalled and the service sector\u2019s rebound from the pandemic has gone into reverse, as the tailwind of pent-up demand has been overcome by the rising cost of living, higher interest rates and growing gloom about the economic outlook,\u201d S&#038;P Global Market Intelligence Chief Business Economist Chris Williamson said. He added that a moderation in demand \u201chas helped to alleviate inflationary pressures,\u201d although supply issues are persisting.<\/p>\n<p>Biden administration officials are seeking to expand semiconductor supplies \u2014 a move that could reduce the cost of automobiles and manufacturing equipment. The United States <a href=\"https:\/\/www.dailywire.com\/news\/onshoring-semiconductor-capacity-is-crucial-to-national-security\">represents<\/a> 12% of global semiconductor manufacturing and 25% of global semiconductor demand, according to Radford University management professor Zachary Collier.<\/p>\n<p>Earlier this week, Treasury Secretary Janet Yellen <a href=\"https:\/\/www.dailywire.com\/news\/yellen-pushes-to-end-american-dependence-on-china-for-computer-chips\">traveled<\/a> to South Korea and other Asian allies to discuss strengthening trade in the semiconductor sector. \u201cResilient supply chains mean a diversity of sources of supply and eliminating to the extent we can the possibility that geopolitical rivals will be able to manipulate us and threaten our security,\u201d Yellen explained in reference to \u201creal concerns\u201d about China\u2019s willingness to sever trade ties with rival nations.<\/p>\n<p>Lawmakers have <a href=\"https:\/\/www.dailywire.com\/news\/plans-for-new-semiconductor-factories-across-america-hit-major-roadblock\">proposed<\/a> the $52 billion CHIPS for America Act \u2014 yet because the funding has not yet reached chipmakers, companies such as Intel, TSMC, and GlobalFoundries recently issued \u201cpublic warnings\u201d that they might \u201cscale back their plans to make semiconductors\u201d in the United States, according to the U.S. <a href=\"https:\/\/www.commerce.gov\/news\/press-releases\/2022\/06\/icymi-three-companies-warn-about-delayed-chip-funding-globalwafers\">Department of Commerce<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Executives are reporting the sharpest decline in business activity since the spring of 2020, according to a Friday release from S&#038;P Global. S&#038;P Global\u2019s most recent Purchasing Managers\u2019 Index (PMI), which tracks business leaders\u2019 reported changes in their companies\u2019 output, fell from 52.3 in June to 47.5 in July, with readings below 50 marking contraction &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1575092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1566762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1566762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1566762"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1566762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1575092"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1566762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1566762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1566762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}