US Manufacturing PMI Drops, Biggest Miss On Record

Tyler Durden's picture

But, but, but... the rest of the world's PMIs are soaring as soft-survey data trumps any hard data facts. US Manufacturing dropped from 57.3 to 56.3 despite analysts that were convinced it should rise further to 57.5. This is the biggest miss on record, and the 2nd miss in a row. In spite of soaring markets proving the recoverty is just picking up and accelerating, new export orders weakened, manufacturing production fell, input costs surged, and employment tumbled to 10-month lows. But, stocks are surging on this dismal news...

 

 

as Employment tumbled to its worst of the year!

"Worryingly, job creation slid to its lowest since last September, which in part reflects concerns that current sales growth may not be sustained. A key source of concern is export sales, which continue to show disappointingly meagre gains"

 

*  *  *

A gentle reminder from BofA of the uselessness of the soft survey based PMI data...

the US data mills churn out a lot of surveys. Since the last FOMC meeting, there have been four new ISM readings and a bunch of regional releases. A popular view is that these surveys are better than hard data.

 

In our view, however, these data get way too much air time. They give a timely, rough read on the economy, but should get little weight once hard data are released.

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Shizzmoney's picture

DOW 20,000 by end of July 2015

Space Animatoltipap's picture

And gold to $800. At least that's how the dark international socialists in NY/London would like to have it. 

NoDebt's picture

And it goes without saying, THERE IS NO INFLATION.  Companies are just absorbing those higher input costs.

orangegeek's picture

Dow 20,000 in the next hour

AccreditedEYE's picture

Meaningful progress forward cannot be made with BofAML as the rudder for the ship. Discuss.

just-my-opinion's picture

Why buy stuff....When you can buy food

 

I will pay you today for a ham-burger .....up 1 dollar a pound in 3 months.....good thing I have peanut and jelly

 

PlusTic's picture

buy stokks/sell treasuries...no such thing as bad news     :0

gcjohns1971's picture

What do you want to be they want us to sell treasuries so that the Fed can monetize them through Euroclear?

SheepDog-One's picture

It's funny to look back a few articles to 'futures rise wildly on PMI euphoria' then they're even higher now on the PMI record collapse. Just dump moar gold, and lift all stawks it's easy.

Mrmojorisin515's picture

please, lets stop focusing on statistics.  If the inputs are garbage of course the output will be garbage.  We need a new topic of discussion on zerohedge

just-my-opinion's picture

If the price of beer goes up....I might start shoot-in peeps

 

Sark/but I may not be kiddin

 

SheepDog-One's picture

If the price of beer starts going up? Hell a 6 pack of Coors light is almost $10 here, 5 years ago it was half that.

Cruel Aid's picture

Beer is the new wine. It has been engineered. Sick of nouveau riche drinking and trading the good stuff.

I know a couple of beer connoisseurs. Its a joke to me. I like stouts, pilsners and ales, but chocolate, basil,citrus,different friggin notes, etc, to me is just marketing bullshit and that's why hopps are behind the supply/demand curve.

BeerMe's picture

Yeah beer has already gone up.  $10+ for six packs from smaller brewers is the norm.  Haven't looked at the six of Coors; usually get the case on sale for around $16.

disabledvet's picture

If prices fall then your sales numbers look bad...it ain't like the oil and natural gas still isn't flooding he market though.

The amount of oil in storage got hammered yesterday...yet the amount of distillate production soared. That says to me "production" is booming.

The problem of course is so is "debt production."

It will take time to start building a Banking System without Wall Street but it proceeds apace.

long-shorty's picture

"Biggest Miss On Record"

lol. record being since mid-2012.

if this was an article about temperature data going back to 1880, everyone would be all over the comments pointing out the brevity of the record and the misleadingness of the headline. but since it is a negative headline, it's OK for it to be completely misleading.

not cheerleading this P.O.S. economy/market here; just like to see a little intellectual honesty.

orangegeek's picture

LMFAO!!!!!

 

And GDP is going to recover from -3.0% to 3% in 3 months, right yellen???

 

Still lots of farmers' fields in Oklahoma to park cars off the assembly line - we still have time!!!

SheepDog-One's picture

Used to be crops as far as they eye could see, and we'd export the surplus to the rest of the world....now it's just fields of shit weeds far as the eye can see.

SheepDog-One's picture

GDP -3% ..... That's some great news for you peasants! Use your shekels and buy some stawks!

ptoemmes's picture

It's gotta be Putin's fault.

TabakLover's picture

China, German PMI up = stocks up.  US PMI down = stocks up.

Un-huh.

 

lasvegaspersona's picture

Fish gotta swim

Birds gotta fly

    Stocks gotta surge...it is Tuesday (or a day very much like Tuesday)...crazy huh?

    hell it makes no sense but I'm in....if Rosie and the boys can capitulate I can too...not that I would ever sell anything         precious....

 

The Most Interesting Frog in the World's picture

So the Fed is printing money no one needs (it remains in resevere).

Young people are getting educated for careers, that do not exist.

Cars are being built, that remain on lots (or sold/soon to be repo'd to someone with crap credit or "sold" cough... rented at $99 per month for 2 years).

Soon to come, apartments, spec homes, bank owned housing that will go unsold.

China is building container ships nobody is using (drop in DBI).

China is building ghost cities, maybe to be never filled.

I can tell you that the US federal government is buying stuff it does not need, or no sane individual or business would ever invest in to at this time.

The global economy, global demand, has literally cratered since the turn of the century.  And massive debts are NOT the illness (which is the popular wisdom - debt is holding us back, right?) it is the syptom.

When an individuals organs slowly start to fail, the illness, they end up dying from the massive amount of fluid, the syptom, that builds up in their system.  The global economy will ultimately die the same death.