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US Manufacturing PMI Misses By Most On Record, Lowest Since January
Recovery, we have a problem... November's Flash US Manufacturing PMI printed a 10-month lows 54.7, missing expectation sof 56.3 by the most on record and tumbling for the third month in a row. The last 2 mnths have seen the biggest drop since June 2013 ands as Markit notes, suggests a further drop in GDP growth expectations of only 2.5% in Q4. Output is down for the 3rd straight month and Surprise!! Export market weakness is being blamed... as it seems the US cannot decouple from the rest of the world's slump after all and is - as we have explained numerous times - merely on a lagged cycle.
10-month lows...
“The manufacturing sector is undergoing a marked slowdown in the fall after enjoying a buoyant summer.
Output growth has now fallen for three straight months, taking the pace of expansion down to its lowest since the start of the year. Unlike January, however, this time the weaker rate of growth can’t be blamed on the weather.
Export market weakness holds the key to the recent slowdown, with manufacturers reporting the largest drop in export orders for nearly one and a half years.
“There’s some reassurance from manufacturers continuing to boost their payroll numbers at a robust pace, but with backlogs of work showing almost no growth, the rate of job creation looks likely to moderate in coming months unless new order inflows pick up again.
“The manufacturing and service sector PMI data available so far point to GDP growth slowing to around 2.5% in the fourth quarter.”
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So - in summary - China PMI is at 6-month low, Europe at 16-month low, Japan dropped and is in a quadruple-dip recession, and now US manufacturing is at 10-month low... seems like QE really worked eh!?
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We're gonna need more Fed-fueled subprime-auto-loan malarkey to keep this dream alive.
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Well that explains why stocks reversed and shooting higher...
Wow the snow effect on the economy works quickly.
Even when it's isolated to a very small section of the country.
DaddyO
edit: What's amazing is the notion that our GDP is so fragile as to be affected by what should be trivial events.
They call it the American Dream because you have to be asleep to believe it.
Absolutely fucking broken.
DavidC
The actual daily chart of the S&P500; for instance, is very interesting. Refusing to make any new high after it's recent effort a week ago; which i shorted at the top in the form of a Mar. '15 contract, it has been trading in a very narrow range; completely unable to regain it's recent high. One thing markets never do is remain in a tight price range for a long time; especially it's rational to expect this very nervous and jittery stock market to make some significant breakout from this small tight trading range. Although the Winter Holidays are very poor timing for short sales, traditionally, I think it will be easier for this market to make a break out to the down side than the up side. As a note to people who bought into the simplistic idea that the market can't go down while Fed policy is very loose; the Fed doesn't buy stocks; the Banks the Fed. funds buy stocks; and they know very well that they can profit just as much on the downside as they did on the up side. They won't compete with each other; it'll be like team poker; they'll all start shorting about the same time. John Pierpont Morgan who ran a bank of a similar name went short the N.Y. Stock Market in 1929 before the crash.
Maybe a few more sanctions on our manufactured enemies will help the economy reach escape velocity.
GDP is slowing. Inflation in Food, Utilities, Healthcare and Housing are above 3%. Manufacturing is tanking. Europe is two thirds the way down the toilet.
Buy more.
Got it.
Lawn dart.
But markets are "off the lows". Can't wait till Europe is closed, we'll really achieve lift off then.
Why did Silver jump up a dollar about a week ago and then stay there? New York did their duty yesterday, slamming the price almost a dollar as soon as London closed; but it was all in vain.
Everybody is lying and the figures are deliberately misleading .
You are about 3 times richer than you think .
See
https://www.academia.edu/9405720/The_Economics_of_Disrespect_Update_I
or
http://andreswhy.blogspot.com/2014/11/the-economics-of-disrespect-update...
The Manufacturing Renaissance will be delayed.
Only our stock market has decoupled from the rest of the world.
Cash for clunkers on flat-screens?
"Treat your television envy by treating yourself to a new 80-inch flatscreen this Christmas! Take advantage of our 10-year payment plan. No money down if you turn in your current model!"
*The meme being US companies have a few dollars of chips in there. Also, overseas units of fab helps multi-national bottom lines.
Manufacturing...... Lol, the only manufacturing we have going on in the U.S is the manufacturing of excrement.
Inflation is our most important product; we export it everywhere.
STRONG DOLLAR BITCHEZ!!!
I imagine that the Russian sanctions also affected the US as well as the European production and sales figures. The sanctions were not well thought out and leave a lot of business suffering because the US and NATO want to be the the Bosses of the world. Fermenting government overthrow in the name of Democracy and such, I want to regurgitate, OOps, I did!
Good that we have bad weather to blame it on. Snowboarding New York City http://www.youtube.com/watch?v=keFBEoBy0zY
Come on, you cannot rely on these statistics! At least when they're good, anyway.
I imagine that the Russian sanctions also affected the US as well as the European production and sales figures. The sanctions were not well thought out and leave a lot of business suffering because the US and NATO want to be the the Bosses of the world. Fermenting government overthrow in the name of Democracy and such, I want to regurgitate, OOps, I did!