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Major Manufacturing Miss

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…

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 …

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38 comments

Frank Pytel February 3, 2014 at 12:25 pm

WaitForIt

Reply
Smirks February 3, 2014 at 12:48 pm

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.

Reply
EJB February 3, 2014 at 3:51 pm

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.

Reply
Frank Pytel February 3, 2014 at 4:39 pm

Copy that. I work for the fabricator. Same boat

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venomachine February 4, 2014 at 8:12 am

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.

Reply
Jackie Chiles February 6, 2014 at 12:16 pm

Executives always tell the truth. Fact.

Reply
just another guy February 3, 2014 at 12:51 pm

Thanks zerohedge. Great recap

Reply
venomachine February 3, 2014 at 1:12 pm

Yawn…http://research.stlouisfed.org/fred2/series/NAPM/

Gloom and doom sells.

Ever read The Rational Optimist?

Reply
Frank Pytel February 3, 2014 at 2:22 pm

But POTUS said corps to hire hire hire. Dell is

Oh sorry. Dell to fire (first round) 15k. WTF

Reply
venomachine February 3, 2014 at 2:28 pm

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.

Reply
Frank Pytel February 3, 2014 at 2:32 pm

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’

Reply
venomachine February 3, 2014 at 3:03 pm

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.

Frank Pytel February 3, 2014 at 3:13 pm

Your logic is impeccable. I’ll remember it during the “correction” this summer.

venomachine February 3, 2014 at 3:20 pm

Don’t get me started on the BS games the gov plays with those numbers.

Money Machine February 3, 2014 at 4:45 pm Reply
CNSYD February 3, 2014 at 1:16 pm

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.

Reply
GrandTango February 3, 2014 at 2:00 pm

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????

Reply
SCBlueWoman February 3, 2014 at 2:25 pm

Please STFU. You never contribute a damned thing.

Reply
GrandTango February 3, 2014 at 3:47 pm

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…

Reply
Frank Pytel February 3, 2014 at 4:40 pm

Agreed

Reply
anon. February 3, 2014 at 7:45 pm

SCBlueWoman, You ignorant SLUT! (Said in the voice of Dan Aykroyd.)

Reply
SCBlueWoman February 3, 2014 at 8:57 pm

At least you didn’t call me a lesbian.

Reply
Prez Perry? February 3, 2014 at 2:58 pm

Who’s right every time…

Reply
Frank Pytel February 3, 2014 at 3:10 pm

It sure ain’t Obutthead. Course Bushy ain’t done much better. T just aint figured it out yet.

Reply
GrandTango February 3, 2014 at 4:00 pm

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????

Reply
Frank Pytel February 3, 2014 at 4:41 pm

T, bush continued it after clinton, after bush, after regan, after carter. Read your history n take your meds

GrandTango February 3, 2014 at 3:47 pm

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??

Reply
Prez Perry February 3, 2014 at 5:15 pm

Yet, you’re the one who said he would win in 2008, then the poor self rightious fuck could not win the primary…

Reply
GrandTango February 3, 2014 at 5:35 pm

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…

Prez Perry February 3, 2014 at 5:52 pm

My bad, Butter Nuts, 2012.

GrandTango February 3, 2014 at 6:15 pm

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…

EJB February 3, 2014 at 4:00 pm

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

Reply
Frank Pytel February 3, 2014 at 4:45 pm

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.

Reply
anon. February 3, 2014 at 7:47 pm

Not silver, LEAD!

Reply
euwe max February 3, 2014 at 8:23 pm

gold… oops… not gold… oil!.. oops, not oil…

marijuana! penny stocks! that’s the ticket!

Reply
Frank Pytel February 4, 2014 at 3:14 am

Copy that brother

Reply
venomachine February 4, 2014 at 8:14 am

Bottled water, canned food, and shotgun shells.

Reply
Jackie Chiles February 6, 2014 at 12:14 pm

The answer is obviously to eliminate tax breaks for companies. That’ll help.

Reply

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