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Manufacturing growth slowest in 19 months: Markit
Workers construct a cattle mixer/feeder at a farm equipment manufacturing facility in Merced, California October 27, 2009.
Credit: Reuters/Robert Galbraith
NEW YORK |
NEW YORK (Reuters) - Manufacturing this month expanded at its slowest pace since late 2010, hobbled by weak overseas demand for American goods, though a rise in domestic orders helped cushion the blow.
Financial information firm Markit said on Tuesday its U.S. "flash" manufacturing Purchasing Managers Index for July fell to 51.8 from 52.5 in June. July marked the fourth consecutive month of slower growth and the sector's weakest showing since December, 2010.
The index remained above 50, indicating factory activity continued to expand, only less rapidly.
New orders for exports fell outright for the second straight month, the first back-to-back decline in nearly three years, Markit said, as recession in Europe dented demand.
"The U.S. manufacturing sector is clearly struggling under the pressure from falling exports," said Chris Williamson, chief economist at Markit. "Reassuringly, domestic demand appears to be showing ongoing signs of resilience, encouraging firms to take on more staff."
When including domestic demand, new orders grew, though the reading of 51.9 showed the pace of growth slowed. June's tally was 53.7. The employment index rose to 52.9 in July from 52.8.
Even so, economists worry that the broader U.S. economy, which grew at a 1.9 percent rate in the first quarter, has since lost momentum. A poll of 74 economists polled by Reuters expects April-to-June growth to have slowed to 1.5 percent.
Last year, manufacturing had been something of a bright spot in an atmosphere of otherwise sluggish growth, but it too has showed signs of slowing over the last few months.
The Labor Department said employers added fewer than 100,000 new jobs in June for the third consecutive month.
Williamson said there are more clouds on the horizon.
"Overall, the third quarter is so far shaping up to be worse than the second quarter in terms of growth, which is a growing concern for policymakers," he said.
Wall Street is bracing for another round of monetary easing from the Federal Reserve before the year ends. The median forecast in a July poll of 16 primary dealers showed a 70 percent chance of more action.
The "flash," or preliminary reading, is based on replies from about 85 percent of the U.S. manufacturers surveyed. Markit's final reading will be released on the first business day of the following month.
(Reporting by Steven C. Johnson; Editing by Chizu Nomiyama)
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Do the simple calculation: 300+ million Americans out of 7 billion people in the world, means that Americans represent 4% of the world’s market.
If we keep denigrating the 96% of all potential buyers
by bantering fake, dishonestly fudged numbers
about unrealistic profit numbers for Americans
by making goods just for Americans,
the world will have 96% of the market,
and we will have 4%.
Is it a surprise that those making dishonest propaganda about
the benefit of manufacturing for 4% and keep speaking vilely
about the 96% of other human beings in the world
as if they are animals or inhuman tools
to be used for American pride and sneering,
would alienate most of the world from buying American products?
No brainer. Pride based on racism, xenophobia doesn’t pay,
like Diane Sawyer kept telling America it would.
He has always said, “China is the largest growing market. We must have good relations to sell to our customers. We cannot keep aggravating them in our rhetoric.”
Warren Buffett has much of the same attitude about investing in China.
That’s why these men were successful, and had enough money to do a great deal of good for the disadvantaged, poor, sick and needy in the world at large.
For the United States to prioritize on its internal market, is a refusal to compete, and will hurt ourselves more than anyone.
Many Americans have been falsely misled by our politicians and irresponsible newscasters that buying Americans will cure out economy.
No. It will ail our economy some more because that kind of scapegoating mentality turn our focus away from how to many i-pads and products that would gain worldwide popularity and help us regain a decent reputation for our entrepreneurs. It forces businesses to make illogical decisions that defy fundamental business and economic principles —- and we are seeing the result of all that racist xenophobia, and childish refusal to reform and fix our own problems.
Ron Paul has it right, but is shouted down by lame self-serving folks like Bernanke, who is in his position because he knows how to talk to those already in power, and convince them to keep him in power to continue the blindness, the lies of our federal government that got us here in the first place.
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