US PMI Data Sounds The Recession Alarm

Tough to find any silver economic linings in June's much-weaker-than-expected PMI numbers, which included a 23-month low for Manufacturing PMI, and 5-month low for Services. From the Composite writeup from S&P Global:

• Recession-level manufacturing numbers - "Manufacturers fared worse [than service providers], with factory production slipping into decline as the respective seasonally adjusted index fell to a degree only exceeded twice in the 15-year history of the survey, at the height of the initial pandemic lockdowns in 2020 and the height of the global financial crisis in 2008."
• Poor demand - "Weaker demand conditions, often linked to the rising cost of living and falling confidence, led to the first contraction in new orders since July 2020...Decreases in new sales for goods and services in June were the first recorded since May and July 2020, respectively."
• Weak exports - "new export orders contracted at the steepest pace since June 2020 as foreign customers paused or reduced new order placements due to inflation and supply chain disruptions."
• Lingering inflation pressures - "Inflationary pressures remained marked in June, as input costs and output charges rose substantially again."
• Softening employment - "Manufacturers and service providers alike registered slower increases in employment midway through 2022, as the rate of total job creation eased to the slowest since February. Despite ongoing reports of challenges hiring or retaining staff, weaker client demand and reduced pressure on capacity led to some firms not replacing leavers."
• Falling backlogs - "Backlogs of work across the private sector decreased for the first time in two years in June"
• Slumping confidence: "business confidence slumped to one of the greatest extents seen since comparable data were available in 2012, down to the lowest since September 2020."