US Manufacturing sector contracts for the first time in nearly a decade

[Gaali_Gottam_Govinda]

Manufacturing sector contracts for the first time in nearly a decade

KEY POINTS

• The U.S. manufacturing PMI (purchasing managers index) was 49.9 in August, below the neutral 50.0 threshold for the first time since September 2009, according to IHS Markit.
• New orders received by manufacturers dropped the most in 10 years, while the data also showed export sales tanked to the lowest level since August 2009, the data show.

 

Traders work on the floor of the New York Stock Exchange on August 14, 2019

Spencer Platt | Getty Images

U.S. manufacturer growth slowed to the lowest in almost 10 years in August, the latest sign that the trade war may be exacerbating the economic slowdown.

The U.S. manufacturing PMI (purchasing managers index) was 49.9 in August, down from 50.4 in July and below the neutral 50.0 threshold for the first time since September 2009, according to IHS Markit.

 

Any reading below 50 signals a contraction.

“Manufacturing companies continued to feel the impact of slowing global economic conditions,” Tim Moore, economics associate director at Markit, said in a statement on Thursday. “August’s survey data provides a clear signal that economic growth has continued to soften in the third quarter.”

Manufacturing had been one of the big winners during the Trump administration, but the **-for-tat tariffs in the U.S.-China trade war have taken a big bite from the sector. U.S. manufacturing activity slowed to a nearly three-year low in July, based on data from the Institute for Supply Management.

But this new survey showed new orders received by manufacturers dropped the most in 10 years, while the data also showed export sales tanked to the lowest level since August 2009.

“The most concerning aspect of the latest data is a slowdown in new business growth to its weakest in a decade, driven by a sharp loss of momentum across the service sector,” Moore said. “Survey respondents commented on a headwind from subdued corporate spending as softer growth expectations at home and internationally encouraged tighter budget setting.”

 

Manufacturers continued to reduce their inventories this month, which was mainly contributed to the concerns about the demand outlook, according to Markit.

U.S. overall business activity growth also fell to a three-month low as the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index dropped to 50.9 in August, signalling a “renewed slowdown” in the rate of U.S. private sector business activity growth, Markit said.

 

2009 lo Banks deevala teesayi.......... I think 2019 lo manufacturing and Corporate bankruptcies.... Also most new tech companies who are running in losses will get screwed in coming recession.....

[reality]

#MAGA