US Manufacturing and the Housing Downturn
Some 25% of the US economy is tied to housing including furniture and appliances.
Since most of those items are made offshore, who really suffers when we stop buying?
I think the US trade defict may actually improve a bit
Since most of those items are made offshore, who really suffers when we stop buying?
I think the US trade defict may actually improve a bit
posted by Andrew at
7:59 AM
2 Comments:
Does it not mean that 'When US sneezes, rest of the world gets cold'? If US stops buying, what would happen to the rest of the world when they are unable to sell their products? Does it mean that international funds may go down?
The US is no longer the driver of the global economy, but any import slowdown will have an effect.
I think China is mostly exposed because they are the last link on the chain before the US. However, other Asian countries will be affected because some 50% of Chinese exports are just assembly. That is primarily high tech products.
My concern was how will a slowdown in housing related spending affects US jobs. My thinking is retailers are most exposed because US manufacturers have already been throttling back.
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