Report
Patrick Artus

If the weakness of industry is due to a transfer of demand from industry to services, it cannot trigger an overall recession

Manufacturing activity is currently very weak, worldwide and in OECD countries. This often raises the question: could this weakness trigger an overall recession ? If the shock is only a weakening of manufacturing production, that is possible, as this shock also weakens services (as the income generated in industry declines, which reduces demand for services); But if the shock is a transfer of demand from industrial products to services , then, on the contrary, demand for services is strengthened, and there cannot be an overall recession . When looking at recent developments in the global economy and in OECD countries, we see that there is probably a transfer of demand - at least partial - from industry to services.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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