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US Manufacturing "Remains In Low Gear" - Hovers Near One-Year Lows
Having fallen 4 months in a row in December to its lowest since last January, one could have been forgiuven for expecting the ubiquitous hope-driven bounce we so often see in soft-survey-based data and sure enough, Markit's US Manufacturing PMI eked out a very small (53.9 vs 53.7 previous) rise in January - hovering at practically one-year lows. On the heels of China's disappointment, it appears the cleanest dirty short of America is not decoupling too much (if at all). This is not the "crisis has passed", "economy is strong" narrative-confirming data that Obama and The Fed would have everyone believe and as markit notes, “Manufacturing remains in a lower gear compared to that seen last summer... adding to the suspicion that the pace of economic expansion in the first quarter could even fall below the 2.6% rate seen in the final quarter of last year."
Chart: Bloomberg
As Markit explains,
“Manufacturing continued to expand in January, but the sector remains in a lower gear compared to that seen last summer. Factory output growth and job creation remain well below last year’s peaks, adding to the suspicion that the pace of economic expansion in the first quarter could even fall below the 2.6% rate seen in the final quarter of last year.
“The fear is that the economy will become increasingly reliant on the consumer to sustain growth, which is another reason besides the economic slowdown to believe that policymakers will be wary of raising household’s borrowing costs via rate hikes any time soon.”
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Moar stimulus, moar free money oir wecannay hold it Jim...
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Manufacturing bullshit is at all time highs
9/11 Truth: The NIST “no molten metal” guy posing by steel with unexplained melting (PHOTOS)
hip hip hoooray for recovery
I never understood the idea behind PMI numbers.
The number is always constantly hovering above 50 (= always bullish??) and in case something happens (see 2008) the PMI is lagging behind and just stating the obvious.
PMI was below 50 in the second half of 2008 and first half of 2009? No way! Who could have guessed?!?
Jeeeez! Could ZH please give a little less emphasis on PMI numbers and Markit "explanations"? Thanks!
True , like BDI, they are lagging indicators.
All we are seeing was what was hidden by QE, and its not an oil painting, or maybe one
by Hironimus Bosch.
no one is building oil drilling rigs right now...that is for sure....and you are not building shopping centers...Cat and Deere are down..so who is manufacturing.....????? Oh Shake Shack..they are building burgers...I get it now..