Amid an upscaled China trade tension that worsened further over the weekend, the US economy faces off another fatal blow on Monday, the 5th of August 2019, while US Commerce Department’s data reveals that US service sector activity which includes finances, communication, retail sales, wholesales alongside all professional services accountable for about two-thirds of United States’ entire economy witnesses a sweeping plunge, while new orders have dwindled to their lowest level in three years last month, pointing towards a bundle of limpid signs that US economy has been miring in the soft-patch early in the third quarter.
Meanwhile, a report from the US Institute of Supply Management (ISM) revealed at early-morning US-trading hours added further strains on the United States’ wobbling economy amid a whacking trade war which has been toiling millions of dollars from the global money markets every day.
According to Monday’s (August 5th) ISM data, non-manufacturing activity index tumbled by 1.4 percent to 53.7, remarking the index’s second straight monthly decline. Meanwhile, adding that the Monday’s ISM index and Friday’s employment figures combined, would prompt Federal Reserve to step in again, a senior economist at BMP Capital Markets in Toronto, Jennifer Lee said, “The trade war was already inflicting damage to the economy, and now it has been ramped up.
The Fed will step in again, likely in October but possibly sooner, but there is only so much already-low rates can do”.