Amid conflicting narratives on whether the US economy’s third-quarter GDP growth had been a materialist depiction of the inflation-embattled nation, the US business activity had contracted for a fifth straight month in a row, as the New York-based rating agency S&P Global Inc data had illustrated on Friday that the US PMI had bottomed further below a 50.0 level this month.
In tandem, Eurozone and Germany’s PMI data add to further backlash, as the 27-member bloc has reportedly been struggling to spring up their growth momentum despite generous protective measures for a wide array of businesses ranging from small-scale restaurants to corporate behemoths. In the point of the fact, according to data from rating agency S&P Global Inc, the US business activity had shrunk fir a fifth straight month on November as a higher interest rate remained as a key drag for a swathe of businesses.
Adding further holocaust, demands appeared to be slowing down amid a ludicrous rise in living cost across the US, while EU business activities had failed to make significant progress despite several state-backed bailout packages.
US economy contracts for a fifth straight month
According to data from S&P Global Inc., the New York-based global rating agency’s flash composite PMI (Purchasing Managers’ Index) that tracks data for both factory and services sector activity, dropped further to 46.3 in November compared to a final reading of 48.2 October.
A reading below 50.0 indicates contraction. Followed by the release of latest PMI data, an analysts’ poll had forecasted a 60 per cent chance of a recession in the US within a year, while earlier in Q2, 2022, heavyweight US lender Goldman Sachs had warned of a recession in the US as early as by early-2023.