Two weeks ago we showed the notable cyclical collapse in Goldman Sachs' business cycle 'Swirlogram', due to a combination of downward revisions in over-adjusted data and actual economic decline. The latest 'swirlogram' shows that the situation has gone from bad to worse. While hope remains due to strength in AUD and CAD (commodity) currencies, Consumer confidence, global PMIs, and Industrial metals have all worsened significantly pushing the Global Leading Indicator momentum down notably. The next key indicators Goldman are watching are Belgian and Dutch manufacturing, Japanese Industrial Production Inventory/Sales, and Korean exports and they remain cautious of the increasing fiscal drag in the US.
How quickly we flopped from expansion to slowdown...
and Goldman's GLI points to future deterioration inglobal industrial production...
Charts: Goldman Sachs