Business conditions are at their worst level since the 2008 financial crisis, says Morgan Stanley
Source: Marketwatch
The business environment is deteriorating fast.
That is according to a gauge of business conditions tracked by Morgan Stanley, which said in a recent note that its proprietary Business Conditions Index, or MSBCI, fell 32 points last month, marking its sharpest collapse since the metric was formulated. The gauge touched its lowest point since the 2007-08 financial crisis. A separate composite business-condition index also fell by the most since 2008 and hit its lowest level since February of 2016.
Morgan Stanleys report comes as stocks in June have mostly drifted higher in turbulent trading, with the Nasdaq Composite Index COMP, -0.53% entering correction territory on June 3, but gaining 6.3% since that point as of Friday morning trade, according to FactSet data.
Swirling anxiety around the U.S.s trade relationship with China and other major international counterparts has hurt the confidence of business leaders because the unresolved tariff battles have made it difficult for corporate chieftains to develop business strategies and forced many companies to alter their supply chains.
Morgan Stanley said that its index also reflects an apparent slowdown in domestic jobs growth. Economists for the report, led by Ellen Zentner, wrote that the fall in business conditions is consistent with the slowdown in gross hirings reflected in the latest employment report for May, and raising the risk that weakness in labor demand persists into next months report.
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Read more: https://www.marketwatch.com/story/business-conditions-are-at-their-worst-level-since-the-2008-financial-crisis-says-morgan-stanley-2019-06-14?mod=mw_theo_homepage
democratisphere
(17,235 posts)Lonestarblue
(10,011 posts)Trump and his Republican sycophants have quite an accomplishment here. It took Bush nearly eight years, two wars in the Middle East, and a big tax cut to destroy our economy. Trump and friends are well on the way to doing the same thing in less than three years. What a big win! Hes finally better at something than another president.
dreamland
(964 posts)It's the business owners big and smaller supported #1 charlatan. They were touting big numbers if wall street went for theRump. Too bad.