US Manufacturing Weakest In 10 Years As New Export Orders Collapse

"US Manufacturing Weakest In 10 Years As New Export Orders Collapse" Gee what a surprise! Who would have ever expected that to happen after the implementation of the tariffs and China's response! How could it be any other way? I guess no one in DC ever saw that coming.... or maybe they did and wanted it to happen for some nefarious reason ,but that might be a stretch! Welcome to The Atlantis Report . US manufacturing activity tumbled to a more than 10-year low in September as lingering trade tensions weighed on exports, further heightening financial market concerns of a sharp slowdown in US economic growth in the third quarter. The survey from the Institute for Supply Management (ISM) on Tuesday came on the heels of data last week showing a moderation in consumer spending in August. The US economy’s fading fortunes have been blamed on the White House’s 15-month trade war with China, which has sapped business confidence and undermined manufacturing. This is serious .There is no end in sight to this slowdown, the recession risk is real. The Federal Reserve cut interest rates again last month after lowering borrowing costs in July for the first time since 2008 to keep the longest economic expansion in history on track. Fed Chair Jerome Powell said trade policy tensions, which “have waxed and waned, and elevated uncertainty is weighing on US investment and exports.” Powell said US central bank contacts had told policymakers that trade policy uncertainty “has discouraged them from investing in their businesses.” The ISM said its index of national factory activity dropped 1.3 points to a reading of 47.8 last month, the lowest level since June 2009, when the recession was ending. A reading below 50 indicates contraction in the manufacturing sector, which accounts for about 11% of the US economy. September’s reading marked the second straight month that the index broke below the 50 threshold. The index has now declined for a sixth consecutive month and is in stark contrast with a rebound in the so-called hard data like industrial production, which showed output at factories rising in August. Still, the ISM index needs to drop below the 42.9 level to signal a recession in the broader economy. EXPORT ORDERS PLUNGE . The ISM’s forward-looking new orders sub-index edged up to a reading of 47.3 last month from 47.2, which was the lowest level since June 2012. A measure of export orders plunged 2.3 points to a reading of 41.0 in September, the weakest since March 2009. The survey’s factory employment index dropped to 46.3 last month, the lowest in more than 3-1/2 years, from 47.4 in August. This raises the risk that factory payrolls contracted in September after increasing by a paltry 3,000 jobs in August. The ISM said only three industries – miscellaneous manufacturing, food, beverage and tobacco products, and chemical products reported growth last month. That was the fewest since 2013 and down from nine in August. Transportation equipment, machinery, and electrical equipment, appliances and components were among the 15 industries reporting a contraction. The US-China trade war also coincides with a fading boost from last year’s $1.5 trillion tax cut package. The ISM said comments from manufacturers “reflect a continuing decrease in business confidence,” and also noted that “global trade remains the most significant issue.” Economists polled by Reuters had forecast the ISM index rising to 50.1 in September. The ISM’s forward-looking new orders sub-index edged up to a reading of 47.3 last month from 47.2, which was the lowest level since June 2012. A measure of export orders plunged 2.3 points to a reading of 41.0 in September. The survey’s factory employment index dropped to 46.3 last month from 47.4 in August. The dollar fell against a basket of currencies after the data. US Treasury prices rose. US stocks were trading lower. Everything going as planned : gross private domestic investment tumbled . Freight Shipments Index fell 5.9% . purchasing managers’ index PMI down . S&P 500 earnings growth fell 5.2% . gross domestic product GDP from 3 to 2% . 5.7% of all energy companies with junk rated bonds are defaulting . Another Trump failure. Was not he supposed to save US manufacturing ! Welcome to the Trump Depression .




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