Albert Edwards says booming US economy is an illusion

Former
White House adviser claims she once saw President Donald Trump
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• Famously bearish Societe Generale strategist Albert
  Edwards says that a strong economic indicator getting a lot of
  attention is an “illusion.”
• The ISM Manufacturing PMI hit a 14-year high last
  month, and was touted by many as a sign of the US’s economic
  strength.
• Look beyond the obvious, however, and a clear slowdown
  is underway in the US economy, Edwards says.

The blockbuster economic growth manifesting itself in the United
States right now is a mere “illusion” and a whole bunch of data
is pointing to an impending slowdown. So says permabear Albert
Edwards in his latest note to clients.

Societe Generale’s notoriously bearish strategist is once again
predicting an imminent downturn in the US economy, saying that
this week’s impressively strong manufacturing data is masking
much bigger issues.

ISM’s purchasing managers’ index for manufacturing, which
tracks sentiment in the industry and is highly respected by
economists, printed at 61.3 in the month of August, the highest
level in 14 years. That’s just 0.2 percentage points away from
the best reading in nearly 35 years.

Edwards, however, argues that beneath the rip-roaring performance
of the manufacturing sector, signs are clear that the good times
are going to come to an end some time soon. …

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