MORE SOFTNESS IN THE U.S. ECONOMY …
By FITSNEWS || The U.S. manufacturing sector took a hit this week with the release of Markit’s flash PMI – or purchasing managers’ index.
Based on new orders, inventory levels, production, supplier deliveries and “employment environment,” a PMI reading above fifty is considered to be reflective of an expanding economy. This month’s reading clocked in at 56.2 – well below September’s 57.5 reading (and well below analysts expectation of a half-point decline).
“Softer new business growth,” was the main culprit, according to the report, “as the latest rise in new orders was much weaker than in September and the slowest for nine months.”
“The latest increase in production volumes was the weakest since March,” the report added. “Moreover, the rate of output growth has now moderated for two months in a row, which represents the first back-to-back slowdown since May 2013.”
Ruh-roh … and according to Markit this two-month backslide could “translate into a further slowdown in the coming months.”
Following an unexpected retail slump last week, we’re now looking at additional evidence of a softening economy – one in which a record 92.6 million working age citizens are already not participating.
Stocks were soaring mid-day Thursday despite the bad news … up nearly 250 points on the result of positive earnings reports. Of course the market has taken a beating over the last few weeks, so these gains aren’t exactly worth getting excited about.
Guess that means it’s time for the government’s central planners to roll out more “stimulus.”
3 comments
What a joke. Please stop writing these articles. Please study economics and this report prior to writing this garbage. Thanks in Advance.
You took the words right out of my mouth. In this instance I must agree, Will took Econ 101, with good ole Sean Hannity. Under the last administration we’de have killed for readings over 52.
You might have killed for it, but none of the rest of us would. Look a (US) PMI of 50 is neutral, anything like a 52 means little as that does not really indicate any expansion of the manufacturing sector beyond the an inflationary market demand. It does not mean more jobs, but it might mean a bit more work for the relatively unproductive US manufacturing sector. (The Markit group admit as much. http://www.markiteconomics.com/Survey/PDF.mvc/EN_BriefGuide )