This page has been archived and commenting is disabled.
US Manufacturing PMI Tumbles To 22 Month Low: "Lack Of Growth" And Deflation Blamed
Not even the seasonally-adjusted sentiment surveys can give a glimmer of hope any more. A few weeks after the July ISM manufacturing report printed at the lowest since March, moments ago the Markit mfg PMI index was released, printing at justt 52.9, below the expected 53.8, and down from last month's 53.8. This was the lowest level since October 2013 and the biggest miss in exactly 2 years, with output, new orders and employment all expand at slower rates in August; Markit adds that "Input cost inflation picks up fractionally, but remains well below the survey average."
The report also notes that the latest rise in production volumes was the weakest since the weather-related slowdown recorded in January 2014 - perhaps someone can blame it on the record hot July. Some survey respondents cited a cyclical slowdown in new business growth, as well as heightened uncertainty regarding the demand outlook in August.
But wait, the financial comedy TV said China can not possibly affect the US. Just chalk it up to the latest thing the economists were wrong about.
Most notably, now that even highly subjective survey data can no longer be rigged to boost confidence, there is only one recourse: beg and plead for the Fed to not hike rates or better yet, as Bank of America did overnight, just hint that QE4 is just around the corner if the market crashes enough. To wit, commenting on the flash PMI data, Tim Moore, senior economist at Markit said:
“August’s survey highlights a lack of growth momentum and continued weak price pressures across the U.S. manufacturing sector, which adds some fuel to the dovish argument as policymakers weigh up tightening policy in September.
“With the headline PMI swiftly losing ground after a modest rebound during July, the latest figure now points to the weakest overall pace of manufacturing growth for almost two years.
“According to survey respondents, the strong dollar continued to put pressure on export sales and competitiveness, while heightened global economic uncertainty appeared to have dampened client spending both at home and abroad. Alongside this, manufacturers of investment goods widely cited growth headwinds from the slump in capital spending across the energy sector.
“Sluggish manufacturing demand conditions and subdued cost pressures resulted in further restraint in terms of factory gate prices during August. Output charge inflation has broadly flatlined this summer and remains close to its lowest recorded by the survey over the past three years.”
In fact, best just to do QE4, cause this time it will be different.
»
- 12624 reads
- Printer-friendly version
- Send to friend
- advertisements -
Deflation is horrible. I just HATE it when my dollars buy MORE stuff.
Right up until there is no stuff, or dollars.
Debt based systems cannot handle deflation. That is why inflation of 2% is stable. Because you need debt growth to keep from imploding.
I am all fine for blowing this to kingdom come. Twice. As long as my kids get a shot at having their labor not valued in something that the moneychangers create out of thin air I will take that chance.
pods
Hey look guys, they are waterfalling silver! AHAHAHAHA, yeah sure, the world is in flames and silver declines in value against a filthy, soon to be rejected piece of paper!!! What a bunch of maroons.
I like when things go on sale.
I like money
It's all the fault of reality, so reality must be outlawed. I'm working up a recipe for "surprised sheep casserole"......
Still waiting for price of food to deflate.
Gas went up by at least a dollar here around Chicago within the last week or two. Fuck that
RBOB oct futures at 1.35. Translates to 1.85 at the pump depending on your state.
Local prices 2.18 to 2.29.
we thought about barbecue for the family dinner this Sunday. called the local pit barbecue (which we have not done in a long long time). They wanted 14.99/lb for all barbecued meats, whether chicken, pork or beef. WTF. We will not be having local pit barbecue ever again until the great deflation hits restaurant food prices.
As a side note, last week I cooked my very first lobster at home. I have never ever cooked lobster at home. I always went out, but at 45.00 a plate I thot I would give it a try. Awesome. We will never go out for lobster again.
Follow up note: I followed the lobster with King Crab this week. Another food I have never cooked at home. Guess what? It's lobster and King Crab at home from now on. I quit going out for steaks 15 years ago. No more restaurant food, ever.
(thank god the local fish distributor takes my ebt card) lmao
Unfortunately, there is not much more stuff I want to buy.
No movies I want to see.
No songs I must download.
No concerts I have to attend.
No clothes I cannot wait to wear.
No car I have to drive.
Until we restore the entrepreneural and creative and inventive environment in the US, I guess I will just have to keep stacking.
I'm long on sunsets and grandchildren......
Bad news is great though. With news this bad (great) I'm sprinting to buy my $300 Tesla tote bag.
Is that a battery powered tote bag?
My least favourite newspeak word is...
De-Growth..
yours?
I wonder how many people actually know the meaning of inflation and deflation...
Over here in my country, inflation used to mean a pay increase... untill they voted that one out about a year ago...
Now nobody cares about it anymore...
But gosch.... how come everything gets more expensive...
You know shits gettin real when the MSM's are using words like "bloodbath".
But I thought the Bernank killed the deflation? WTF?
Me so horny for Big 'Merican cocked up numbers
alter-growth is more sexy.
Like a woman shedding silicone and looking more slim fast.
I'm not buying any of this negative shit any more. I'm going full throttle with whatever the Fed says. I like feel good stories. All this negativity is such a downer.
"In fact, best just to do QE4, cause this time it will be different."
The bearings are beginning to seize for lack of $$$Grease. 'Mr. Chairman, get to work'...
it should be the biggest QE yet. Shoot for 8 trillion
.
Yes of course we must always find someone or something to blame except the media created President or the Jewish Cartel of thieves and liars. Perhaps later in the day the Bush legacy will be raised as the cause of the 7 years of malaise and indirection by this clown? I for one have had enough of the blame game and outright lies! Goodbye America you do not have people willing to stand up for you anymore!
The Blowhorn is trying to push U.S. equities, because we all know *caugh*caugh* they will decouple from the rest of the world.
Those fucking clowns deserve everything that's coming their way.
I'm going to enjoy watching them ride their burning ships to bottom of the [ Mariana Trench].
China too.
Race to the bottom.
Then what?
About the only 'production' left in the usa is military hardware, bombs and ammo. Without any overt wars apparently business is in a crunch.
We must have WAR!
War or surrender.
Obozo would love to raise the white flag on America.
America is lead by a muslim pig.