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The business environment is deteriorating rapidly.
This corresponds to a template of economic conditions followed by Morgan Stanley, who said in a recent note that its economic index, or MSBCI, fell by 32 points last month, marking its biggest collapse since the formulation. of the metric. The tonnage has reached its lowest level since the 2007-08 financial crisis. A Composite Composite Index has also fallen sharply since 2008, reaching its lowest level since February 2016.
Morgan Stanley's report is released as June stocks have mostly moved upward in turbulent transactions, with the Nasdaq Composite Index
COMP -0.50%
entering the correctional territory on June 3, but gaining 6.3% since that day from Friday morning, according to data from FactSet.
Swirling anxiety over US trade relations with China and other international counterparts has eroded business confidence, as unresolved price battles have prevented business leaders from developing business and marketing strategies. have forced many companies to change their supply chains.
Morgan Stanley said its index also reflected an apparent slowdown in employment growth in the country. Economists report, led by Ellen Zentner, have written that the deterioration in economic conditions was "consistent with the slowdown in gross hires reflected in May's latest employment report and that the risk of seeing the weakness of the demand for work persist in next month's report. "
In fact, the United States created only 75,000 new jobs in May, which was in line with the consensus forecast for some 185,000 jobs created during the month, and could mark a significant shift in been a pillar of the strength of the national economy.
Morgan Stanley said that, taken with other parameters that deepen the financial conditions, "these indicators point to an almost total expansion of activity in June".
Friday, the Dow Jones Industrial Average
DJIA, -0.04%
the S & P 500 index
SPX, -0.18%
and the Nasdaq composite index
COMP -0.50%
were headed lower than Broadcom
AVGO, -6.30%
lowered its forecast for the rest of the year after posting the second quarter results on Thursday afternoon. Other values in the chip sector were also weaker.
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