{"id":38876,"date":"2018-10-08T11:44:27","date_gmt":"2018-10-08T16:44:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38876"},"modified":"2018-10-08T11:44:27","modified_gmt":"2018-10-08T16:44:27","slug":"the-u-s-economy-is-on-a-sugar-high","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38876","title":{"rendered":"The U.S. Economy Is on a Sugar High"},"content":{"rendered":"
\n
\"\"<\/div>\n

The U.S. Economy Is on a Sugar High<\/a><\/h3>\n<\/header>\n
\n
\n

Many companies are rushing to secure products and materials before the trade war\u00a0worsens<\/strong><\/p>\n

Across the U.S., companies are hitting the panic button. The Trump administration has levied 10 percent tariffs on $200 billion of Chinese goods, a charge that is expected to rise to 25 percent by 2019. This tops the tariffs on $50 billion of Chinese goods<\/a> that were imposed in August, and is an effective tax on U.S. consumers, who will soon be paying more for everything from cosmetics to clothing to cars if they aren\u2019t already.<\/p>\n

Against that backdrop, it\u2019s becoming clear that many companies are rushing to secure products and materials before prices rise regardless of current demand<\/a>. You could say they are in panic-buying mode. The upside is that this behavior bolsters economic growth in the short term. The downside is that there is likely to be a nasty hangover. The noise in the economic data will be amplified by the rebuilding from Hurricane Florence. The estimates of the storm\u2019s damage span from $20 billion to $50 billion.<\/p>\n

Evidence that panic buying has set in was seen in the September Chicago Purchasing Managers Index report, which is a bellwether for the broader national manufacturing sector. While the results \u201cdisappointed,\u201d with the index falling from 63.6 to a still high 60.4 and the new orders component sinking to a six-month low, the inventory component surged above the 60 mark. (In these diffusion indexes, readings above 50 denote expansion.) To put the stockpiling in\u00a0context, inventories have only breached 60 twice this year. Such nosebleed readings are so rare that they rank in the 97th percentile over the last 30 years.<\/p>\n

As per the Chicago PMI: \u201cFirms continued to add to their stock levels, building on August\u2019s marked rise. The scarce availability of inputs continued to encourage stockpiling while forecasts of higher future demand also contributed to the rise in inventories.\u201d<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

\n
<\/div>\n<\/figure>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. Economy Is on a Sugar High Many companies are rushing to secure products and materials before the trade war\u00a0worsens Across the U.S., companies are hitting the panic button. The Trump administration has levied 10 percent tariffs on $200 billion of Chinese goods, a charge that is expected to rise to 25 percent by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13492,7844,8442,805,3222,841],"class_list":["post-38876","post","type-post","status-publish","format-standard","hentry","category-economics","tag-danielle-dimartino-booth","tag-donald-trump","tag-panic-buying","tag-trade","tag-trade-war","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38876"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38876\/revisions"}],"predecessor-version":[{"id":38877,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38876\/revisions\/38877"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}