AI
Monday, July 08, 2019 3:29:27 PM
German automobile manufacturing is the largest component to the Germany Manufacturing PMI numbers. Here is a link to the Germany automobile production output -
https://tradingeconomics.com/germany/car-production
Here is a 5 year chart showing the German automobile production downturn that began in early 2018 and has continued for ~18 months now. If this down trend continues, the second half of 2019 is going to get ugly for Europe, and 2020 will be worse. If this occurs, Europe will likely become a drag on the world economy.
Germany Manufacturing PMI numbers (chart below) will need to rise above 50 for this current German automobile production down trend to end and turn up.
Remember, a number above 50 is a growing number of manufacturing jobs (hiring), a number above 55 is 'party-time', a number below 50 is a shrinking number of manufacturing jobs (lay offs), a number below 45 is 'blood-in-the-streets'. Watch for movements in the Germany Mfg PMI chart for the next 6-9 months.
I have read several predictions of a flight towards gold in the coming months as these European storm clouds appear and grow bigger. This fall might be a good time to buy a new German car!
Plan accordingly.
GLTY
https://tradingeconomics.com/germany/car-production
Here is a 5 year chart showing the German automobile production downturn that began in early 2018 and has continued for ~18 months now. If this down trend continues, the second half of 2019 is going to get ugly for Europe, and 2020 will be worse. If this occurs, Europe will likely become a drag on the world economy.
Germany Manufacturing PMI numbers (chart below) will need to rise above 50 for this current German automobile production down trend to end and turn up.
Remember, a number above 50 is a growing number of manufacturing jobs (hiring), a number above 55 is 'party-time', a number below 50 is a shrinking number of manufacturing jobs (lay offs), a number below 45 is 'blood-in-the-streets'. Watch for movements in the Germany Mfg PMI chart for the next 6-9 months.
I have read several predictions of a flight towards gold in the coming months as these European storm clouds appear and grow bigger. This fall might be a good time to buy a new German car!
Plan accordingly.
GLTY
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