Global business cycle continued to deteriorate in June – Danske Bank

Danske Bank analysts note that the global business cycle continued to deteriorate in June, as PMI new orders and OECD leading indicators fell further.

Key Quotes

“The weakness is driven, in particular, by soft investments, while private consumption has held up better supported by robust real income growth.”

“Geographically, the most weakness is found in euro area manufacturing, not least in German manufacturing orders. However, China has also softened again and US manufacturing indicators point to an industrial recession.”

“The latest tariff increases provide a headwind that will weigh in the short term.”