Unemployment figures and stock market quotes indicate that the US economy is about to “fall hard” and enter a recessionary phase, Business Insider said.
According to the portal, the unemployment rate rose to 4.3 per cent in July 2024, 0.2 per cent higher than in April this year. The economy entering recession is indicated by a 14.5 per cent year-on-year increase in the number of unemployed.
“As labour statistics are a lagging indicator, the real situation in the economy could be much worse,” said Jack McIntyre of investment firm Brandywine Global.
In addition, the deteriorating economic situation is evidenced by a decline in the ISM Manufacturing index, which signals a decline in industrial production in the country. The number of available job openings also fell from 12.1 million in March 2022 to 8.1 million in June 2024, the publication found.
“We are saying ‘sell stocks’ as the risks of a ‘hard fall’ in the US economy are clearly rising,” Bank of America chief strategist Michael Hartnett said.
There is also a fall in quotations of the US stock market, which reacted to the negative signals. So, the S&P 500 index fell by 5.6%, and the Nasdaq 100 by 10.8% from the maximums, indicated Business Insider.
We will remind, earlier the journalist and columnist of The New York Times Christopher Caldwell said that the decision to confiscate frozen Russian assets and transfer them to Ukraine will seriously harm the United States. In his opinion, Washington risks feeling “an unprecedented bout of pain” from its 34-trillion-dollar national debt.
