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US Manufacturing Growth Slows To 1 Year Low As Shale Collapse Cripples New Order Spending
Who could have seen that coming? It appears that for all the bluster that the US economy could somehow decouple from the rest of the world's demise (when as always it is simply and timing issue - lagged response), America's manufacturing renaissance is dying. Markit's US Manufacturing PMI printed 53.7 in January, missed expectations of 54.0 falling for the 5th month in a row to the lowest in 12 months.
While day after day, investors are told that low oil prices are unambiguously good for America, Manufacturing PMI was last lower than this in October 2013 as survey respondents note clients operating in the oil and gas sector have weighed on new order volumes in January.
Slower new business growth was a key factor weighing on the overall performance of the U.S. manufacturing sector in January. Volumes of new work have increased in each month since September 2009, but the latest upturn was the weakest for a year and slightly slower than the average seen during the current period of expansion. Reports from survey respondents suggested that improving domestic economic conditions continued to boost new order levels, but overall export demand remained lacklustre. Meanwhile, some manufacturers noted that reduced spending among clients operating in the oil and gas sector had weighed on new order volumes during January.
Chart: Bloomberg
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bullish. the little people economy doesn't matter. the only thing that matters is ceos and billionaires
"the only thing that matters is ceos and billionaires"
No, the only things that matter is your relationships, your Stackers, your God-given wisdom.
Slow News so far today Tyler
53.7 vs. 54.0
Nothingburger.
Don't tell Jack Lew.
Anyone heard from wrs1?
Havent seen him in a while.
He was quite optimistic that US will do just fine and all shale oil well owners/operators are ok....that was just a 3-4 weeks back.
Low oil price forces BHP Billiton to exit US shale operations
In Midland, hunkering down for the oil bust
"The most nervous people in Midland seem to be the oil executives who say busts may be inevitable, but how long they last is anybody’s guess.
Over a lavish buffet lunch recently at the Petroleum Club of Midland, the talk was woeful and full of conspiracy theories about how the Saudis were refusing to cut supplies to vanquish the surging U.S. oil industry.
“At $45 a barrel, it shuts down nearly every project,” Steve McCoy, Latshaw Drilling’s director of business development, told Pruett and his guests. “The Saudis understand and they are killing us.”
DB,
Up arrow for you. BTW, by January 1, 2030, no more new oil wells. We'll be living off those already drilled.
When new investments are down, rental prices for equipement go up.
And this week we saw ourselves a mayor spike in order for tools and parts for new parts equipement so the end for this pricedrop in oil is near.