Research and Writing by SiddSoni. Humans are seldom seen in the BMW factory complex of Spartanburg, S.C. Although the manufacturer has a 7,000-person workforce, the majority of the luxury vehicles are fashioned by robots.
Judging by the volatility of the stock market in recent weeks, many investors get nervous whenever the Fed hints that its current quantitative easing program—are we up to QE5 yet?--might be about to end. The thinking appears to be that ending quantitative easing will pull the rug out from under
Durable goods orders increased a large 3.6 percent in May following a similar 3.6 percent gain in April. There were, however, large losses in March that set up that rebound; year to date through May 2013, durable goods orders are up only 2.1 percent compared to the same period one year ago.
Global Economy, Economic Environment, Labor, Money & Finance, GDP
For years, protectionist policies helped Brazil build a fortress around its manufacturing base, which profited from a rapidly expanding domestic market over the past decade. Ever-rising purchasing power and the best credit conditions in decades fueled the demand for durable goods and housing, in turn stimulating most intermediate industries. A sort of virtuous cycle led to a broad-based manufacturing expansion that was interrupted in the wake of the 2008 global economic crisis. It took Brazilian factories more than a year to recover pre-crisis output levels, and manufacturing subsequently stopped growing. Three years have passed without genuine manufacturing growth in Brazil, despite the government’s protectionist stance that is ingrained in every sector of the economy.
Even against the backdrop of a strange time, the setup for the outcome of yesterday and today’s FOMC meeting was remarkable. Imagine that you just boarded a bus either to go home, to visit relatives, or for some other important reason.
Our manufacturing outlook for Europe has been revised downward. The uneven recession in the Eurozone is now coupled with a downturn in the Czech Republic and sharply falling economic activity in Poland. Domestic demand continues to soften.