Morgan Stanley’s Business Conditions Index Falls 32 Points

NEW YORK–Morgan Stanley's Business Conditions Index, which captures “turning points” in the economy, fell by 32 points in June, to a level of 13 from 45 in May.

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The decline is the largest one-month drop on record and the lowest level since December 2008 during the financial crisis, Morgan Stanley reported.

"The decline shows a sharp deterioration in sentiment this month that was broad-based across sectors,” economist Ellen Zentner said in a note to clients, according to the New York Times. "Fundamental indicators point to a broad softening of activity, but analysts did not widely attribute the weakening to trade policy."

As CUToday.info reported, the economy added just 75,000 jobs in May, and the latest manufacturing report shows growth at its slowest pace in two years.

June's conditions index reading showed notable declines in hiring, hiring plans, capex plans, and business conditions exceptions, Morgan Stanley said.

The manufacturing subindex business conditions fell sharply to zero, "a decline that was likely exaggerated by the recent turn lower in oil prices, while marking the lowest level for the subindex on record," Zentner said, according to the Times.

The services subindex also fell to 18 from 35.

Section: Standard
Word Count: 268
Copyright Holder: CUToday.info
Copyright Year: 2019
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URL: https://www.cutoday.info/THE-news/Morgan-Stanley-s-Business-Conditions-Index-Falls-32-Points