Reporter, United States, Wall Street Journal discussed on This Morning with Gordon Deal
Stumbles over the past year have been no surprise to the world's purchasing managers and the people closely following the economic indexes that are produced from their views. Wall Street Journal economics reporter, Jeff zoom. Brin says global purchasing managers index is where PM is have come forth as a leading barometer of the health of the world's major manufacturing sectors. Josh set this up. A really interesting economic index is produced all over the world. You know, it's it started in the United States produced in the United States for over eighty years. And what these indexes do is they talked to purchasing managers, but you're really interesting people in a lot of companies, the people that are in charge of ordering supplies, the company apply managers purchasing managers procurement officers, and they get back them whether or not their orders prices. Prices are up and all these very simple question and put that together to track. How the economy is going to end up being such interesting window into the economy. Think about a CEO, and they're sitting there thinking about strategy thinking about share price new things about investors about how to manage company and all these things, and then you think about some manager. And you know, this is the guy who imagine you're a pencil company is the guy who only thing he's thinking about it. How much do I need to order? How much how much a graphite? Do. I need to order. Laser focused on getting the supplies should company. Right. And so that is a really interesting window into how trends Nikon. Amir changing part is their data from purchasing managers more relevant today than ever. That's right. This approach one is the think about a lot of economic data like the jobs report. Right. That's kind of a big one every month in the US. Is we talked about the jobs, you've only US data. No one ever kind of there's no system in place to do that same number all around the world. This is too complicated. Too expensive other countries have their own little message. You know, there's no there's no strict comparability, but purchasing managers index one of the things that so unique is performed in almost all the major Connie's. You know, no matter what the structure of your Konami is in no matter what industry Dr you have these purchasing managers. Didn't know what's going on. David is in Iraq. You know, think about how impossible it would be to put together a traditional jobs, according to country like that. But it's fairly feasible to find the biggest company managers. What's going on? Indexes all over the world. They provide a fascinating window into what's happening in the global economy. We're speaking with Wall Street Journal reporter, Josh Zumra. He covers economics, and he's written a piece entitled to gauge the health of the global economy look to purchasing managers of these guys and gals been saying, well, the message lately has been one of quite a bit of concern, you know, in the last three months of this year, four months of this year. Everyone woke up to the fact that the global economy is really kinda weak by quite a few different measures, the the global trade just slow down stock market, really wobble. Because of this in the fall, but he's purchasing managers indexes. She'd been showing signs of concern for the entire year index is really started going down in January. And so there's a lot of evidence that this wasn't going to be as strong of a year. It's twenty seventeen had been for the global economy. Twenty eighteen wasn't going to be a strongest trade seventeen. So. Do they look how far how much? I guess foreign advanced do they look, well, they cover the monks. They they cover the months. You know, the the January survey we'll come out at the very first day of February. So comes out almost real time. I mean, he doesn't want you to chair, but it, but it covers almost real time. What's happening in the month of in the month that the report happens, so the the general consensus right now for twenty nine hundred and perhaps twenty twenty would be what Josh well, the general consensus is that things are a little soft heading into the new year. You know, it's it's only January, and thanks you go any different direction, but the consensus so far from these reports things just looking a little soft at the start of the year, and how much do they weigh like geopolitical factors like you? You referenced the the pencil maker before does he consider trade with China or perhaps some military conflict and elsewhere in the world. The great thing about these index is way, these guys they have to shut all that out. So that might be the reason that things are changing, but the purchasing managers end up the guy who thinks about what's being the China trade war. This is the guy that says, I don't need to order as much would this month. And you put all that together. And you say, oh, there's less demand for this is something's going on in the economy. You know, they don't know that they don't ask them about the reasons why they act and how much demand they're seeing that quite into a great barometer is Josh Wall Street Journal economics reporter, Josh zoom. Brin twenty minutes.