In an interview on FOX Business Network’s Risk & Reward, “Gloom, Boom & Doom Report” publisher Marc Faber says he still thinks a recession is on its way.
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“I think there is a deceleration of economic activity everywhere,” he told Deirdre Bolton. “The U.S. has done relatively well, but also in the U.S. there are now cracks that are appearing… industrial production, new orders for durable goods… if you look at the trade balance of the U.S., imports are up and exports are basically down.”
He added, “you look at corporate announcements of United Technologies and Caterpillar Tractor, which are big companies in the industrial sector… their announcements are all essentially negative for the second half. Technology companies have all warned about the second half.”
Faber said the Chinese economy is not as strong as reports have indicated.
“The Chinese economy is nowhere near growing what the government is publishing,” Faber said. “When the weakness in China becomes so evident, it also affects all its trading partners and China is the largest trading partner of 124 different countries in the world. The new point of view is that [China’s economic growth] is nowhere near 7% and more likely closer to 2%, if any growth at all.”