U.S. factory activity slows to two-year low as clouds gather over economy

m.knox

Well-Known Member
Gold Member
Aug 20, 2003
106,255
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I can confirm this......... Things are getting mighty slow. Believe it or not, the semiconductor shortage might be the savior of this recession. With auto sales suffering for 3 years, there will be pent up demand. Cars do not last forever. At some point, people will NEED a new car.

#BIDENCOOLEREFFECT

https://finance.yahoo.com/news/u-manufacturing-sector-slows-june-140125406.html?fr=sycsrp_catchall

WASHINGTON (Reuters) - U.S. manufacturing activity slowed more than expected in June, with a measure of new orders contracting for the first time in two years, signs that the economy was cooling amid aggressive monetary policy tightening by the Federal Reserve.

The survey from the Institute for Supply Management (ISM) on Friday also showed a gauge of factory employment contracting for a second straight month, though an "overwhelming majority" of companies indicated they were hiring.

The slowdown in manufacturing followed moderate consumer spending growth in May along with weak housing starts, building permits and factory production, which left some economists anticipating that the economy contracted again in the second quarter following a slump in gross domestic product in the first three months of the year. Another decline in GDP would not necessarily indicate a recession unless the economy suffers deep job losses.

"This does not suggest that a recession is on the way yet, but growth conditions continue to decelerate broadly in response to Fed tightening and extended cost pressures for consumers and businesses," said Ben Ayers, a senior economist at Nationwide in Columbus, Ohio.
 

junior1

Well-Known Member
May 29, 2001
6,038
6,325
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I can confirm this......... Things are getting mighty slow. Believe it or not, the semiconductor shortage might be the savior of this recession. With auto sales suffering for 3 years, there will be pent up demand. Cars do not last forever. At some point, people will NEED a new car.

#BIDENCOOLEREFFECT

https://finance.yahoo.com/news/u-manufacturing-sector-slows-june-140125406.html?fr=sycsrp_catchall

WASHINGTON (Reuters) - U.S. manufacturing activity slowed more than expected in June, with a measure of new orders contracting for the first time in two years, signs that the economy was cooling amid aggressive monetary policy tightening by the Federal Reserve.

The survey from the Institute for Supply Management (ISM) on Friday also showed a gauge of factory employment contracting for a second straight month, though an "overwhelming majority" of companies indicated they were hiring.

The slowdown in manufacturing followed moderate consumer spending growth in May along with weak housing starts, building permits and factory production, which left some economists anticipating that the economy contracted again in the second quarter following a slump in gross domestic product in the first three months of the year. Another decline in GDP would not necessarily indicate a recession unless the economy suffers deep job losses.


"This does not suggest that a recession is on the way yet, but growth conditions continue to decelerate broadly in response to Fed tightening and extended cost pressures for consumers and businesses," said Ben Ayers, a senior economist at Nationwide in Columbus, Ohio.
Problem will be they can't afford those on the market...if everyone goes EV
 

The Spin Meister

Well-Known Member
Nov 27, 2012
24,260
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An altered state
I can confirm this......... Things are getting mighty slow. Believe it or not, the semiconductor shortage might be the savior of this recession. With auto sales suffering for 3 years, there will be pent up demand. Cars do not last forever. At some point, people will NEED a new car.

#BIDENCOOLEREFFECT

https://finance.yahoo.com/news/u-manufacturing-sector-slows-june-140125406.html?fr=sycsrp_catchall

WASHINGTON (Reuters) - U.S. manufacturing activity slowed more than expected in June, with a measure of new orders contracting for the first time in two years, signs that the economy was cooling amid aggressive monetary policy tightening by the Federal Reserve.

The survey from the Institute for Supply Management (ISM) on Friday also showed a gauge of factory employment contracting for a second straight month, though an "overwhelming majority" of companies indicated they were hiring.

The slowdown in manufacturing followed moderate consumer spending growth in May along with pweak housing starts, building permits and factory production, which left some economists anticipating that the economy contracted again in the second quarter following a slump in gross domestic product in the first three months of the year. Another decline in GDP would not necessarily indicate a recession unless the economy suffers deep job losses.


"This does not suggest that a recession is on the way yet, but growth conditions continue to decelerate broadly in response to Fed tightening and extended cost pressures for consumers and businesses," said Ben Ayers, a senior economist at Nationwide in Columbus, Ohio.
The very definition of a recession is two consecutive quarters with a decline in the GDP. So now they are trying to change the definition so as to avoid admitting we are in a recession.
 
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pioneerlion83

Well-Known Member
May 29, 2001
15,358
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SouthernMD, by way of NJ and PSU
I can confirm this......... Things are getting mighty slow. Believe it or not, the semiconductor shortage might be the savior of this recession. With auto sales suffering for 3 years, there will be pent up demand. Cars do not last forever. At some point, people will NEED a new car.

#BIDENCOOLEREFFECT

https://finance.yahoo.com/news/u-manufacturing-sector-slows-june-140125406.html?fr=sycsrp_catchall

WASHINGTON (Reuters) - U.S. manufacturing activity slowed more than expected in June, with a measure of new orders contracting for the first time in two years, signs that the economy was cooling amid aggressive monetary policy tightening by the Federal Reserve.

The survey from the Institute for Supply Management (ISM) on Friday also showed a gauge of factory employment contracting for a second straight month, though an "overwhelming majority" of companies indicated they were hiring.

The slowdown in manufacturing followed moderate consumer spending growth in May along with weak housing starts, building permits and factory production, which left some economists anticipating that the economy contracted again in the second quarter following a slump in gross domestic product in the first three months of the year. Another decline in GDP would not necessarily indicate a recession unless the economy suffers deep job losses.


"This does not suggest that a recession is on the way yet, but growth conditions continue to decelerate broadly in response to Fed tightening and extended cost pressures for consumers and businesses," said Ben Ayers, a senior economist at Nationwide in Columbus, Ohio.
What???!!!! No chart??!!!
 

m.knox

Well-Known Member
Gold Member
Aug 20, 2003
106,255
60,061
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What???!!!! No chart??!!!

Of course there is a chart. Manufacturing PMI. Less than 50 means contraction....... Joey Asthma is sneaking up on it.

united-states-manufacturing-pmi.png


The S&P Global US Manufacturing PMI was revised slightly higher to 52.7 in June of 2022 from a preliminary of 52.4, but still pointed to the slowest growth in factory activity since July of 2020. New orders fell, due to inflationary pressures, weak client confidence in the outlook and supply-chain disruptions. Firms utilised their current holdings of inputs and finished goods to supplement production, with input buying stagnating and supply chain delays easing. A reduction in new orders, combined with a sustained rise in employment led to greater success clearing backlogs of work, which increased at a notably weaker pace. On the price front, input price inflation was the lowest in three months and output charge inflation also moderated. At the same time, inflationary concerns were once again cited by firms, as business confidence regarding the year-ahead outlook slumped to the lowest level since October 2020. source: Markit Economics