If there is no trade deal that has come into effect before the 15th of December between China and the United States, a major indicator of the health of the economy that is jobs might be facing a hit finally. This is according to the chief global strategist of Charles Schwab, Jeffery Kleintop.
He has said that one of the events that have not been seen yet is the cuts in jobs. The businesses have preferred pulling back the capital spending and there has been a reduction in the pace of trade but the businesses have been reluctant in cutting down on that workforce. However, he thinks that job cuts may be looming if a deal isn’t signed by the 15th of December.
The levels of inventory are back at where they were in the year 2009, around the time the last of the financial crisis and it could be a sign that is bad for the economy and may affect the confidence of the consumers according to Kleintop.
Till now, there have been a lot of experts who have believed that with the confidence of the consumer being strong, the effect on the economy has not been negative in spite of the turbulence caused by the trade war. However, there might be a chance that this is going to change coming January.
Experts believe that a breaking point may be reached if there is no deal that is arrived at by the year-end and it is going to be very impactful since the consumers have held the global economy up and weakness in the markets of jobs may mean that the confidence may come crumbling down.