The Biden-Harris economy continues to falter as the 2024 presidential election approaches. The Fed just recently reported that industrial production fell in the third quarter. Capacity utilization was similar, 2 percentage points below the long-term average. Production of business equipment decreased, as did production of durable goods such as transportation, furniture and related products, automobiles and their parts, electrical equipment, appliances and parts.
This was followed by a report from S&P Global, which noted “the largest decline in new orders since June 2023…employment cuts intensify…inflation rates accelerate.”
S&P Global said:
The main cause of the economic downturn was a sharp deterioration in the demand environment amid the overall economic slowdown and uncertainty surrounding the next presidential election.
New orders fell for the third consecutive month, marking the largest contraction in 15 months. New export orders were also significantly lower than in August, with geopolitical issues and weak demand (particularly in Europe) leading to a fourth straight year of decline.
Manufacturers have reduced production for the second consecutive month as new orders continue to decline. Although the pace of decline was slow, it was the largest since June 2023.
Companies also cut jobs for the second consecutive month in September. Excluding the early days of the pandemic in 2020, this was the largest drop in staffing levels since January 2010.
Craig Williamson, the group's chief economist, said: “Factories have reported the biggest decline in monthly output in 15 months due to a slump in new orders, resulting in producers cutting back on production. “The reduction in capacity has further reduced employment and raw material purchases.”
Translation: The Biden-Harris administration's currency devaluation spending is expected to cause consumers harmed by unexpected de facto tax increases to cut spending.
Retail industry woes
Bed Bath & Beyond's sudden bankruptcy was not surprising. The company was forced to close 2,800 stores due to bankruptcy. Other major retailers such as Walgreens, Family Dollar, Walmart, and TJX are also expected to close more than 2,000 stores by the end of 2025. According to a report from Business Insider, the total number of retail store closures in the United States could reach a staggering 45,000 states over the next five years.
CVS Health, the world's second-largest health care company, is not immune to the Biden-Harris economic devastation. The company announced layoffs of 2,900 employees following its third downgrade in economic performance. The company's stock price fell 19% when the third announcement was made on Friday, forcing President and CEO Karen Lynch to resign. Rumors are circulating on Wall Street that CVS is considering breaking up the company in response to pressures brought on by the Biden-Harris economy.
Last month, national retailer Big Lots filed for bankruptcy and will close 315 stores. He also criticized Biden and Harris' economy.
Like many other retail companies, we have been adversely affected by recent macroeconomic factors, including uncontrollable high inflation and interest rates.
Current economic trends have been particularly challenging for Big Lots, as major customers have reduced discretionary spending in the household and seasonal product categories, which account for a significant portion of the company's revenue.
Global paint maker PPG reported on Thursday that the same economic conditions have forced it to lay off nearly 2,000 employees, and that it is considering selling one of its major subsidiaries in response.
New home construction fell in September as the number of building permits, an indicator of future demand, fell by nearly 3%.
big technical pain
Layoffs are also impacting the technology industry. This year follows a brutal year of layoffs in 2023. Tech giants like Meta (Facebook), IBM, Google, Microsoft, Tesla, and Nike are all announcing job cuts. And in a recent survey of leaders in the field, four in 10 said the Biden-Harris policy of spending money created from scratch continues to hurt the economy and consumers. It has become clear that staff reductions are expected to continue.
Google's parent company Alphabet laid off 12,000 employees last year, and additional layoffs are continuing this year.
All this is reflected in the polls ahead of next month's elections. A recent Gallup poll found that the only issue that more than half of voters consider “very important” is the Biden-Harris economy.
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