As the Reserve Bank’s board members will have heard from staff yesterday and again today, there’s no danger of the US economy falling into recession — despite what the headless chickens in the markets might be claiming.
The data that is being blamed for the big US sharemarket sell-off — a weak reading on American manufacturing activity and a weak jobs report for July — were normal variables in the world’s biggest economy. The activity survey for US manufacturing did contract for a fourth month in July to a reading of 46.8
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