Top Financial Newsletter Profit Confidential Reports: U.S. New Export Orders Fall for Fifth Straight Month; Worldwide Slowdown in Exports Signals Global Recession

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In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that recent data from the U.S. Purchasing Managers’ Index for October show that new export orders have now fallen for five consecutive months. (Source: Institute for Supply Management, November 1, 2012). According to Lombardi, regions around the world are witnessing dramatic slowdowns in their exports this fall, signaling that the global economy is taking a wrong turn and that a global recession is looming.

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Top Financial Newsletter Profit Confidential Reports: U.S. New Export Orders Fall for Fifth Straight Month; Worldwide Slowdown in Exports Signals Global Recession

In 2009, world exports saw their biggest contraction since the Second World War.

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In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that recent data from the U.S. Purchasing Managers’ Index for October show that new export orders have now fallen for five consecutive months. (Source: Institute for Supply Management, November 1, 2012). According to Lombardi, regions around the world are witnessing dramatic slowdowns in their exports this fall, signaling that the global economy is taking a wrong turn and that a global recession is looming.

“In 2009, world exports saw their biggest contraction since the Second World War,” says Lombardi. “Fast-forward to the fall of 2012 and regions around the world are witnessing dramatic slowdowns in their exports.” (Source: “WTO sees 9% global trade decline in 2009 as recession strikes,” World Trade Organization, March 23, 2009, last accessed November 7, 2012.)

As Lombardi notes, those countries that were once the leaders in exports in the global economy are now seeing a marked downward slide in their trade.

In the article “Global Recession Closer Than You Think,” Lombardi reports that in 2005, exports from the European Union (E.U.) accounted for 40% of the global economy’s total exports, while in 2011, it exported only 34%. (Source: Word Trade Organization, October 2012.) He notes that exports into the global economy from the E.U. are facing a further decline due to the region’s financial crisis.

Lombardi adds that Germany, France, Austria, and Greece are at the forefront, seeing substantial export slumps. (Source: Markit, November 2, 2012.)

With the U.S. still not recovered from the Great Recession of 2009, Lombardi notes that U.S. exports are showing weakness once again. He states that in 2010, the U.S. was responsible for 21% of all the exports in the global economy; in 2011, this decreased to 16%. (Source: Institute for Supply Management, November 1, 2012.)

Lombardi adds that export orders for manufacturers from the emerging markets to the global economy have fallen for three straight quarters and are experiencing the worst decline since the first quarter of 2009. (Source: “HSBC Emerging Markets Index Q3 2012,” HSBC, October 10, 2012, last accessed November 7, 2012.)

“Growing exports…are fundamental to strong economies. But with exports declining around the world, a global recession becomes a very stark possibility,” concludes Lombardi. “This time around, a global recession will create bigger problems than it did in 2009, as central banks have run out of weapons to fight it.”

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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