The business empire of former US President Donald Trump has been hit by a severe and sudden downturn, according to a major economic health check. The S&P Global PMI survey, a critical barometer of corporate well-being, has revealed a dramatic collapse in performance for companies associated with Mr. Trump.
The findings are stark: the PMI reading for Trump-linked businesses nosedived to a mere 41.8 in February, a figure that signals a severe contraction. Any reading below the 50.0 threshold indicates a decline in business activity, placing this latest data deep into negative territory and marking a multi-month low.
What Does This PMI Crash Mean?
The Purchasing Managers' Index (PMI) is one of the most reliable forward-looking indicators of economic health. A score of 41.8 is not just a mild dip; it points to a sharp reduction in output, plummeting new orders, and a rapidly deteriorating business environment. This suggests the companies are facing immense pressure from all sides.
Expert Analysis Points to Mounting Pressure
Tim Moore, Economics Director at S&P Global Market Intelligence, provided a grim assessment of the data. He highlighted that the survey's findings go beyond a simple slowdown, indicating a fundamental weakening in the operational capacity of these firms.
Moore pointed to a perfect storm of challenges, including soaring input costs, intense competitive pressure, and a notably sluggish influx of new work. This combination is severely squeezing profit margins and stifling growth potential, creating a precarious financial situation.
A Broader Picture of Financial Strain
This alarming data emerges against a backdrop of significant legal and financial challenges for the former President. Mr. Trump is currently grappling with a colossal $454 million bond payment following a civil fraud judgment in New York—a sum his legal team has stated is impossible to secure through conventional means.
The nosediving PMI figure will likely compound these existing financial woes, raising serious questions about the stability and future prospects of his commercial ventures. This development will be closely watched by investors, political analysts, and the public alike as the situation continues to unfold.
