Several consecutive months of terrible durable goods orders in the U.S. made it clear to anyone paying attention to the U.S. economy that its (truncated) manufacturing sector had suffered another collapse. This has now been confirmed by the ISM manufacturing survey for June, released earlier this week. It reported a reading of 49.7, with anything below 50 indicating an official recession.
Understand that as with virtually every other U.S. economic statistic that this manufacturing index is a grossly optimistic exaggeration of the U.S. economy, based upon a single deception: the fraudulent official numbers on “inflation”. Virtually every economic statistic measures its activity in dollar amounts. So if these statisticians understate inflation, then every percentage-point of inflation that they hide can be directly added to all these other statistics – to skew them much higher than reality.
Use real numbers for inflation, and U.S. durable goods orders are declining at roughly a 33% annual rate. U.S. retail sales are declining by more than 10% annually. And if we used realistic numbers for this manufacturing index, the real number would likely be 40, or 35, or 30 – indicating the severe depression which is taking place in the U.S. economy.
Readers must not forget that even though all official U.S. economic statistics are now bad, that they still represent extreme exaggerations. In the real world the U.S. is experiencing another severe down-leg in its ongoing Greater Depression.
U.S. Manufacturing Shrinks, 1st Time In Nearly 3 Years
(Reuters) – U.S. manufacturing shrank in June for the first time in nearly 3 years as new orders plummeted, according to one measure of the sector that provided a stark sign of the economic recovery’s slowdown…