Josh Zoom, United States, Reporter discussed on This Morning with Gordon Deal
Stumbles over the past year of the 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, Josh zoom. Brin says global purchasing managers indexes or 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. It's been produced in the United States for over thirty years. And what these indexes do is they talk to purchasing managers, but you're really interesting people in a lot of companies, the people that are in charge of ordering supplies companies apply managers purchasing managers procurement officers, and they just asked him whether or not their orders. Your prices are up. And all these very simple question and put that together to track. How the economy is going and end up being such interesting window into the economy. You know, you think about a CEO, and they're sitting there thinking about strategy and thinking about share price new things about investors about how to manage your company and all these things. Manager. And you know, this is the guy who imagine you're in a pencil company. This is the guy who only thing he's thinking about is how much would do I need to order how much how much a graphite. Do. I need to order laser focused on getting the supplies for the company, right? That ends up being a really interesting window into trends and economy are changing part is there data from purchasing managers more relevant today than ever. That's right. Advantage of this approach. One is 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 talk about the jobs you put, but that's 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 there. But you think about these purchasing managers index one of the things that still unique is performed in almost all the major economies. You know, no matter what the structure of your economy is. And no matter what industry Dr you have these purchasing managers. Didn't know what's going on. Indexes in Iraq. You know, think about how impossible it would be to put together a traditional jobs in the country like that. But it's fairly feasible to find the biggest company managers. What's going on? Did you see these indexes all over the world? They provide a fascinating window into what's happening in the global economy. Speaking with Wall Street Journal reporter, Josh zoom, Renae covers economics, and he's written a piece entitled to gauge the health of the global economy, look to purchasing managers are sort 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 slowing down the stock market really because of this in the in the fall, but purchasing managers index is who'd been showing signs of concern for the entire year. These indexes 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 as twenty seventeen had been for the global economy. Eighteen wasn't going to be its strongest twenty seventeen. So do. They look how far how much foreign advanced do. They look. Well, they cover the month. They they covered the months. You know, the January survey will come out at the very first day of February. So come down almost in real time. But it, but it covers almost real time. What's happening in the month of in the month that the report happened? So the the general consensus right now for twenty nine to 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 things could go any different direction, but the consensus so far from these reports that things are just looking at little soft at the start of the year, and how much do they weigh like geopolitical factors like you reference? You know, the the pencil maker before does he consider trade with China or perhaps some military conflict and elsewhere in the world. Well, the great thing about these indexes didn't way these guys have to they have to shut all that out. So that might be the reason that things are changing, but these purchasing managers, they're not the guy who thinks about what the invitations or 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 word. This is something's going on in the economy. You know, they don't know that they are asked him about the reasons why they asked him how much demand they're seeing. And that's why it ended up being such a great barometer is Josh Wall Street Journal economics reporter, Josh zoom. Brin twenty minutes now in front of.