The American manufacturing industry got terrible news this week as a widely watched indicator posted a disappointing report of historic proportion.
The Institute for Supply Management (ISM)’s factory index plunged from 56.5 in December to 51.3 – well below the expected 56 reading. For those of you keeping score at home, anything above 50 indicates economic expansion – anything below 50 indicates contraction.
That’s the biggest expectations miss in history – one reasons stocks plunged by nearly 250 points during the first three hours of trading Monday.
Ready for more bad news? The ISM’s new orders index fell off of a cliff – falling from 64.4 in December to 51.2 last month – the biggest decline since December 1980. Those dismal results extended to the manufacturing employment index – which fell from 55.8 to 52.3.
Time for somebody to blame the weather again …
South Carolina industry leaders declined to comment on the results, but one manufacturer told FITS the Palmetto State has “a lot of economic development projects in the works.”
Which of course isn’t exactly good news when you get right down to it …
38 comments
WaitForIt
It slipped to its lowest number in eight months. The numbers have been over 50 for the past fourteen.
http://www.marketwatch.com/story/us-manufacturers-suffer-january-chill-2014-02-03?link=MW_pulse
An executive at an oil company, for example, said his firm had a “good
finish to 2013, but slow start to 2014, mostly attributed to weather.”
And an executive at a firm that makes metal parts said: “Poor weather impacted outbound and inbound shipments.”
Other executives, what’s more, said business remained strong. “We
continue to be busy, working six days, 24 hours a day,” said an
executive at a company that produces metals used in the early stages of
production.
“Bad weather and cautious optimism seem be the watchwords in early
2014,” said Gregory Daco, lead U.S. economist at Oxford Economics.
Thank goodness Willie knows better than, you know, people who actually know better.
I can tell you for certain that steel fabrication for building construction is horrible. We are living hand to mouth and don’t see things getting better any time soon. There are those that are doing well (other industries), but many if not most are barely getting by. There will be misery.
Copy that. I work for the fabricator. Same boat
Yeah, it seems most construction work out there is overhauls on existing buildings, usually not requiring structural steel. Only real construction segment I’ve seen doing a third way decent is school construction, and I think that’s past its peak.
Executives always tell the truth. Fact.
Thanks zerohedge. Great recap
Yawn…http://research.stlouisfed.org/fred2/series/NAPM/
Gloom and doom sells.
Ever read The Rational Optimist?
But POTUS said corps to hire hire hire. Dell is
Oh sorry. Dell to fire (first round) 15k. WTF
You’ll see more and more of that. PCs are going the way of the dodo except in business realms.
Just because there were less buggy whip manufacturers in 1920 than 1820, doesn’t mean the economy was bad. You have to look at the overall picture rather than one specific industry.
Please note that I’m not saying the economy is grand, just that you picked a bad example to make your point.
Overall industries;
You mean like all that oil being processed into fuel being sold overseas instead of in the US to lower fuel prices?
What about the Big 3 posting miserable sales results.
Walmart guidance down for the next 3 quarters?
Well, I disagree with your overall assessment. I’m pretty sure it’s global warming and NOT THE FUCKING FED. But I suppose you could be on to something. Hmmm….
Edit: Just sayin’
The big three usually has a pretty bad January in sales.
The others aren’t manufacturing (at least I don’t think oil counts).
Look at overall manufacturing…it is down, but not by much, as the numbers posted above show.
Your logic is impeccable. I’ll remember it during the “correction” this summer.
Don’t get me started on the BS games the gov plays with those numbers.
I know I’m optimistic:
http://lh3.ggpht.com/-C3aMoNaa_PM/Uuvpd2GhkDI/AAAAAAAAO40/Kvij_99yTkk/s1600/fredgraph+(31).png
Things are so bad out Boeing SC that they gave bonuses equal to 18 days pay to their full time workers. The end is near.
What is Amazing..is that you liberals and Liberal-Tarians are surprised at bad economic news, after 5 years of nothing but bad Obama-conomy news…
I told you this would be the result He has no plan, except to tear down…Still, when it manifests, you turn red-faced and ‘tantrum’ always denying…but who is right every time????
Please STFU. You never contribute a damned thing.
If I could have persuaded a majority not to cheat and not to vote for Obama, I would have done a GREAT service to this country…Trying to save us from the misery of Obama is a contribution. With people like me, at least you know WHY is it so bad.
I hate to say it, but your too ignorant and indoctrinated to figure it out what you did to America…
Agreed
SCBlueWoman, You ignorant SLUT! (Said in the voice of Dan Aykroyd.)
At least you didn’t call me a lesbian.
Who’s right every time…
It sure ain’t Obutthead. Course Bushy ain’t done much better. T just aint figured it out yet.
5% unemployment under Bush vs 10%..and Bush was not better…???
$1-plus more per gal.of gas for every gallon sold in America under Obama…
Increasing salaries under Bush, and expanding opportunity…
What planet do you live on????
T, bush continued it after clinton, after bush, after regan, after carter. Read your history n take your meds
You’re an IDIOT if you are against Perry. Look at Texas, and the prosperity, compared to the Total failure Obama is…
You’re not that stupid are you??
Yet, you’re the one who said he would win in 2008, then the poor self rightious fuck could not win the primary…
I wish Perry would have won. I actually think he is a GREAT candidate. Texas is in very good shape…but I don’t think he really had his heart in it in 2008.
If he would have been totally committed, Perry would have been formidable, is what I remember saying.
I wanted ANY Republican, over the disaster of Obama…but I don’t remember saying Perry WOULD win. If you have proof, I’d like to see it…
My bad, Butter Nuts, 2012.
If I take ‘Prez Perry’ from you, as it looks like I’ve done…I’m afraid for what you may do to yourself.
I’m a Conservative, I’m not Obama. I actually care about ALL human life, even yours….So don’t do anything foolish…
Anyone see the list of major indexes, it looks like they slaughtered a bull and it bled all over everything. Many indexes are down 2% or better. Be interesting to see how the rest of the week goes.
2/3/14 4PM
http://markets.wsj.com/usoverview
You got time to put SHTF buggy together. Not much. Buy silver. It will get you through. After the gold owners realize that the gold/silver ratio is,more like 4 to 1 instead of the current 60ish you’ll be fine.
Not silver, LEAD!
gold… oops… not gold… oil!.. oops, not oil…
marijuana! penny stocks! that’s the ticket!
Copy that brother
Bottled water, canned food, and shotgun shells.
The answer is obviously to eliminate tax breaks for companies. That’ll help.