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Home / Business / The business terms are at their worst level since the financial crisis in 2008, says Morgan Stanley

The business terms are at their worst level since the financial crisis in 2008, says Morgan Stanley



The corporate environment is rapidly deteriorating.

According to a business terms survey, Morgan Stanley, who in a recent note said the proprietary business terms index, or MSBCI, fell 32 points last year marked its sharpest breakdown since metric was formulated. The meter affected its lowest point since the financial crisis 2007-08. A separate compound business terms index also fell most since 2008 and hit its lowest level since February 2016.

Morgan Stanley's report as shares in June has largely driven higher in turbulent trading with the Nasdaq Composite Index

COMP, -0.50%

entered the review area on June 3, but increased by 6.3% since the point from Friday morning trading, according to FactSet data.

Swirling anxiety about US trade relations with China and other major international counterparts has harmed business leaders' confidence because unresolved tariffs have made it difficult for business executives to develop business strategies and forced many companies to change their supply chains.

Morgan Stanley said the index also reflects an apparent slowdown in domestic job growth. Economists for the report, led by Ellen Zentner, wrote that the fall in business terms is "in line with the decline in gross revenues reflected in the latest May employment report, increasing the risk that demand demand weakness will continue in next month's report."

USA actually created only 75,000 new jobs in May, awaiting consensus forecasts for approximately 1

85,000 jobs created a month, and potentially marking a significant momentum change in what has been a stronghold in the domestic economy.

Morgan Stanley said it included other calculations that tread deeper into economic conditions, "these indicators point to business expansion approaching in June."

On Friday, the Dow Jones Industrial Average

DJIA, -0.05%

S & P 500 Indexes

SPX, -0.18%

and Nasdaq Composite Index

COMP, -0.50%

was led lower than Broadcom

AVGO, -6.29%

sank his guidance for the rest of the year after reporting second-quarter earnings Thursday afternoon. Other chip sectors were also lower on the news.


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