Analyses of US main street economic indicators. - Part 8

The US economic prognosis is getting worse.  Why?  Let's take a look at the recent economic indicators.

The Richmond Fed manufacturing index (-9) is showing a reduction in US manufacturing activities after the declines in New York and Philadelphia manufacturing indexes.

The US retail sales are having diminishing growth because of the decline in sales volumes and high inflation.  We had already explained this in our previous post below.

http://sg-stock.blogspot.com/2022/04/us-retail-sales-plunged-again.html

The rise in the inventory to sales spread is depicting the decline in sales volume because the consumers reduce their purchases (quantities) due to the high inflation.

Next, we would like to highlight that excessive liquidity is still highly prevalent in the US financial system because the overnight repo market has breached the US$2T mark for the first time.  What does this mean?

This means that the investors can't find any good investment opportunities in a dour economy but to park their monies with the FED to earn the measly 0.8% risk-free interest rate.

Furthermore, many prominent experts are starting to give very negative economic and financial prognoses.

Last but not least, all these factors cause the put/call ratio to surge because the investors turn bearish and increase their hedging.