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Thursday, June 5, 2025

Red alert: OECD has downgraded the US and global growth. - Part 2

It looks like the OECD is right to downgrade the US growth because the service PMI has just moved into the contractionary zone.  From the chart above, the previous contraction was about 1 year ago.  Since the US is a service oriented economy with consumption making up close to 70% of GDP, this decline in service PMI will impact the US GDP heavily.

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