{"id":1620699,"date":"2022-08-23T17:42:25","date_gmt":"2022-08-23T21:42:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1620699"},"modified":"2022-08-23T17:42:31","modified_gmt":"2022-08-23T21:42:31","slug":"businesses-make-more-cuts-in-august-signaling-an-increasingly-weakening-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/businesses-make-more-cuts-in-august-signaling-an-increasingly-weakening-economy\/","title":{"rendered":"Businesses Make More Cuts In August, Signaling An Increasingly Weakening Economy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/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%2Fbusinesses-make-more-cuts-in-august-signaling-an-increasingly-weakening-economy%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=1620699&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--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/2018-12-13T221322Z_1270551635_RC1147742F80_RTRMADP_3_USA-S-P-GLOBAL-scaled-e1661286475607.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>Preliminary data from S&#038;P\u2019s Purchasing Managers\u2019 Index, a prominent measure of business activity, indicates that U.S. businesses are cutting activity at the highest rate in more than two years.<\/p>\n<p>The Flash US PMI Composite Output Index, which represents a preliminary \u2018flash\u2019 of expected business activity in August 2022 across a composite of both manufacturing and services, fell 2.7 points this month, from 47.7 in July to 45.0 in August, its second month of contraction in a row, <a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/060c0e13d7fe45bfa897a470dff44fbb\" target=\"_blank\" rel=\"noopener noreferrer\">according<\/a> to S&#038;P\u2019s press release. Service industries saw reduced demand as increased interest rates and inflation cut into consumers\u2019 budgets, while manufacturers were forced to cut back production in the face of reduced demand, the release states. <strong><a href=\"https:\/\/dailycaller.com\/2022\/08\/22\/poll-inflation-reduction-act-nbc-news\/\">(RELATED: POLL: Most Voters Say Recession Is Here And Dems Spending Bill Won\u2019t Help)<\/a><\/strong><\/p>\n<p>\u201cAugust flash PMI data signalled [sic] further disconcerting signs for the health of the US private sector,\u201d \u00a0Si\u00e2n Jones, Senior Economist at S&#038;P Global Market Intelligence, said in the press release. \u201cExcluding the period between March and May 2020, the fall in total output was the steepest seen since the series began nearly 13 years ago.\u201d<\/p>\n<p>Jones went on to say that inflationary pressures were softening, with \u201cinput prices and output charges [rising] at the slowest rates for a year and-a-half.\u201d However, Jones noted increases in costs and charges remained high compared to historical expectations.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Flash US <a href=\"https:\/\/twitter.com\/hashtag\/PMI?src=hash&amp;ref_src=twsrc%5Etfw\">#PMI<\/a> Composite Output Index at 45.0 in August (July: 47.7), hit a 27-month low due to weakening customer demand amid rising price pressures, higher interest rates and material shortages. Read more: <a href=\"https:\/\/t.co\/BuJ75P4eCj\">https:\/\/t.co\/BuJ75P4eCj<\/a> <a href=\"https:\/\/t.co\/URA7cUnoHN\">pic.twitter.com\/URA7cUnoHN<\/a><\/p>\n<p>\u2014 S&#038;P Global PMI\u2122 (@SPGlobalPMI) <a href=\"https:\/\/twitter.com\/SPGlobalPMI\/status\/1562078217804124161?ref_src=twsrc%5Etfw\">August 23, 2022<\/a> <\/p>\n<\/blockquote>\n<p>The report comes one day after a survey of private economists <a href=\"https:\/\/files.constantcontact.com\/668faa28001\/9ce65b62-78b6-4746-9c4d-74c10dd679b6.pdf?rdr=true\" target=\"_blank\" rel=\"noopener noreferrer\">polled<\/a> by the National Association of Business Economics (NABE) revealed that 73% of NABE\u2019s 198 respondents were either \u201cnot very confident\u201d or \u201cnot confident at all\u201d in the Fed\u2019s ability to reign in inflation without causing a recession.\u00a0 Nearly 20% of respondents believed that the U.S. was already in a recession, while 72% of the respondents believed that the U.S. was either in a recession or would be in one by the end of the first half of 2023.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">\ud83c\uddfa\ud83c\uddf8 US business activity contracted for a second straight month in August<br \/>*The S&#038;P Global flash composite purchasing managers output index slid 2.7 points to 45, the weakest reading since May 2020<br \/>*Link: <a href=\"https:\/\/t.co\/4Iy7JgC3JI\">https:\/\/t.co\/4Iy7JgC3JI<\/a> <a href=\"https:\/\/t.co\/BsFV9YsRiV\">pic.twitter.com\/BsFV9YsRiV<\/a><\/p>\n<p>\u2014 Christophe Barraud\ud83d\udee2\ud83d\udc33 (@C_Barraud) <a href=\"https:\/\/twitter.com\/C_Barraud\/status\/1562074776025403394?ref_src=twsrc%5Etfw\">August 23, 2022<\/a> <\/p>\n<\/blockquote>\n<p>Meanwhile, small business optimism remains historically low, according to a July 1-29 poll conducted by John McLaughlin and Scott Rasmussen, <a href=\"https:\/\/monthlypolling.jcnf.org\/app\/uploads\/2022\/08\/JCN-Monthly-Monitor-JULY-PPT-08-05-22-Master.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">published<\/a> by the Job Creators Network Foundation Aug. 12. Four-fifths of respondents said the Biden administration was not combating inflation effectively, and roughly three-quarters of minority and female-owned businesses said that they were worried they may need to shut down.<\/p>\n<p>Inflation remained historically high in July, according to both the <a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/cpi.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Consumer<\/a> Price Index and <a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/ppi.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Producer<\/a> Price Index, which estimated year-on-year inflation at 8.5% and 9.8% respectively. Each index fell from highs in June, off the back of significant decreases in the price of oil and gas, but saw increases in almost every other category.<\/p>\n<p>\u201cAugust data signalled [sic] a renewed contraction in overall sales as manufacturers and service providers struggled with subdued demand conditions,\u201d S&#038;P\u2019s press release stated. \u201cThough modest, the drop in new orders was the sharpest in over two years.\u201d<\/p>\n<p>Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact <a href=\"mailto:licensing@dailycallernewsfoundation.org\">licensing@dailycallernewsfoundation.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Preliminary data from S&#038;P\u2019s Purchasing Managers\u2019 Index, a prominent measure of business activity, indicates that U.S. businesses are cutting activity at the highest rate in more than two years.The Flash<\/p>\n","protected":false},"author":1181,"featured_media":2315279,"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-1620699","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\/1620699","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\/1181"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1620699"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1620699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1620699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1620699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1620699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}