But, but, but the US is the cleanest dirty short that has decoupled from the rest of the world and is the engine of global growth... right? Well with residential investment having plunged [4], and now manufacturing PMI slumping, we are going to need a better meme. US Manufacturing PMI printed 55.9 final for October, missing expectations fo 56.2 (for 5th month in a row), sliding to its lowest since July. Markit gingerly admits, "the latest figures indicate that the recovery has lost some intensity at the start of the fourth quarter."
[5]
Markit additionally notes, [6]
"Latest data highlighted a sharp moderation in input cost inflation, which some firms linked to lower commodity prices on world markets. Meanwhile, factory gate charges rose at the slowest rate for four months in October.
Output growth moderated to a seven-month low in October, but was still stronger than the post-crisis trend. Weaker new business gains also contributed to the slowest increase in backlogs of work across the manufacturing sector since January."
* * *
So, in summary, the US is decoupling from the rest of the world and
US GDP is decoupling from both domestic housing and manufacturing?
