Latest Troubling News About Business Activity Puts Paid to Dem Narrative – Opinion

Democrats are crowing because they got a win in New York in what they think was a “bellwether” race for the midterms. They’re pushing abortion as their issue and thinking that’s going to turn the tide for them in the midterms.

But if they think that, they’re not looking at the right factors. As I said in my post about that race, it’s the economy, stupid. It’s always the economy. And some troubling signs are coming on that front if what we had already experienced with crushing Bidenflation and officially entering a recession wasn’t enough. Democrats want to keep ignoring the facts, but that doesn’t stop them from coming.

New data released today shows that August’s business activity fell at one of the lowest rates in the past decade due to the rise of interest rates, high inflation, and a reduction in consumer spending.

🇺🇸The US’s business activity declined for the second month straight in August
*The S&P Global flash composite purchasing managers output index slid 2.7 points to 45, the weakest reading since May 2020
*Link: https://t.co/4Iy7JgC3JI pic.twitter.com/BsFV9YsRiV

— Christophe Barraud🛢🐳 (@C_Barraud) August 23, 2022

The latest S&P Global preliminary flash composite purchasing managers index, or PMI, registered a level of 45 as of August 22, down from 47.7 in July.

The rate at which business activity slowed was the fastest recorded since May 2020 when the pandemic shutdowns first took hold, according to S&P Global. It is the fifth consecutive month in which the activity index has dropped and the second consecutive monthly it has been below the contraction threshold.

Levels above 50 indicate expansion, while levels below represent a contraction is occurring, according to S&P Global.

“The data is certainly pointing to a downturn at the moment,” said Sian Jones, senior economist at S&P Global Market Intelligence. “Obviously, we have to wait and see how it progresses, but it’s certainly going to be a challenging business environment going forward.” [….]

The contraction was particularly deep amongst service-sector firms, with the S&P Global Services Business activity index landing at 44.1 in August, down from a 47.3 reading in July. The manufacturing index dropped from 52.2 in July to 51.3 in August — a two-year low.

US companies signaled a sharper drop in business activity, which fell at the fastest pace this month since May 2020: S&P Global. This contraction rate was faster than any other data point in the past 13 years. https://t.co/aXqoKvQAM4

— Lisa Abramowicz (@lisaabramowicz1) August 23, 2022

That’s an indication that, contrary to what the Democrats would like to try to sell to us with things like the slight drop in gas prices, things are getting worse.

When business activity slows, it means higher prices for businesses and more people being laid off.

What is Joe Biden doing in the meantime? Inflation Reduction Act: Signing on to more government spending. He is also expected to force Americans to pay $300 billion for student loan forgiveness. That’s insane and can only make everything worse. We need to take back power to stop the madness if we’re to have any hope of righting the ship.