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Chart Of The Week   July 11 2023

Is The US Manufacturing Cycle On The Verge Of A Turnaround?

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A range of indicators suggest that the US manufacturing sector is currently under duress. But should this weakness be extrapolated into the rest of the year? The US manufacturing cycle tends to follow a very predictable wave-like pattern. Each cycle tends to be characterized by an approximate three-year wavelength. Manufacturing activity in the US tends to move down for 18 months and then tends to move up for 18 months. If this dynamic were to repeat itself, then it would mean that that the US manufacturing sector could stage a comeback soon.