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US Manufacturing Plunges To 2-Year Lows As New Orders, Employment Tumble
Following disappoint PMIs from around the world, the US decoupling meme took another knock today as Markit PMI printed 53.0 (from 53.8) - its lowest in almost 2 years, led by a plunge in the employment subindex. Weakness was also evident in new factory orders. As Markit notes, "U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty." On the heels of Milwaukee and Dallas Fed weakness, ISM Manufacturing printed a disastrous 51.1 (vs 52.5 expectations) - the lowest since May 2013. Employment tumbled, as did New Export ordedrs, but unadjusted New Orders plunged to its lowest since 2013, which is a problem given the massive inventory builds that have saved the world in the last few months.
Manufacturing worst since Oct 2013...
And under the surface it is ugly..
- *MARKIT AUGUST FACTORY EMPLOYMENT GAUGE DROPS TO ONE-YEAR LOW
- *MARKIT AUGUST FACTORY ORDERS INDEX FALLS TO 54.7 FROM 55.4
“August’s survey highlights that the U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty, but resilient domestic spending and subdued cost pressures are keeping the recovery on track. Reflecting this, new orders from abroad have now fallen in four of the past five months, which represents the weakest phase of manufacturing export performance since late-2012.
“In response to softer growth momentum, manufacturers took a more cautious approach to staff hiring and inventories in August. Stocks of finished goods were depleted for the first time in 2015 so far, and job creation was the weakest for over a year, as some firms sought to realign production schedules with expectations of sluggish growth trends ahead.”
And then ISM hit...and collapsed...
As non-adjusted New orders collapse to the lowest sicne 2013...
The breakdown is very ugly...
As respondents noted, hope remains high...
- "Falling crude oil prices are benefiting all resin based purchases as well as positively impacting fuel surcharges for inbound products." (Food, Beverage & Tobacco Products)
- "We are oversold." (Paper Products)
- "Business is still strong but has slowed slightly." (Transportation Equipment)
- "Modest growth slightly ahead of GDP. Optimistic for the remainder of the year as we have little international exposure." (Chemical Products)
- "FX [Foreign Exchange] continues to be a challenge, especially in Europe. Overall though, the mood is fairly upbeat regarding H2 [second half of 2015] as we ramp up for a new product launch." (Computer & Electronic Products)
- "Our business is good due to the increase in commercial construction." (Fabricated Metal Products)
- "Raw metals price decreases will impact our business favorably." (Miscellaneous Manufacturing)
- "Business is guarded but steady. Margins are tight. Markets are very competitive. China is lackluster." (Wood Products)
- "Automotive companies are investing heavily in upgrading their equipment." (Machinery)
- "Business is strong and doing well. Labor continues to be a struggle to find." (Furniture and Related Products)
As New Export Orders collapse into recessionary territory...
But but but decoupling?!
Charts: Bloomberg
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And the hits, they just...
REMEMBER I told you guys I would keep you updated with IKEA sales, so goes IKEA, so goes the US....IKEA is the canary in the cool mine. THe sheep just can't get enough particle board. My Wife works for the best in sales IKEA in the Nation. 3 months ago I got word that other IKEA's around the nation were at about 90% of sales goals, not good. THen I got word yesterday that her IKEA is now only at 75% of sales goals. Get your preps in order, this shit is going down, the sheep have stopped buying particle boards.
Meh. Everything is great in the DC and NYC areas. That's all that matters. $100k a year here won't even allow you to afford a roach infested townhouse in a questionable hood in Fairfax County yet alone a SFH in a good neighborhood. Restaurants and malls are packed and plenty of Jaguars on the road. The capital is doing well gents...
We are particle board, mismatched pieces of waste artificially held together, with a thin veneer of something expensive looking that in the end is overpriced, useless, falls apart in harsh conditions, is unstable and really isn't worth a fuck..
Tell that to the sheep, I am amazed at how people are obssessed with IKEA. Also of note, everytime I go in there I feel like I am in a 3rd world country. THey also have a "gun free zone" policy. Sucks for them that we used thier paychecks to buy more gunz. LOL
The stuff looks shoddy to me. Simply wood chips glued together can't hold up too well. I'd rather buy the solid wood stuff.
But some of their items are good; the coffee, for example.
Okay, I like Ikea. You have to watch what you buy like most any place, but when you live in a small place, like contemporary styling and need economy it is great. It's versatile stuff, as well. If you want to change the color of your sofa you can buy the fitted covers in a new color very easily. I have had to move a lot to stay employed and cannot lay out new money for expensive stuff. It can cost as much to move furniture as buy new stuff, as well.
I have a solid wood dining table that is brilliant. About half my condo is Ikea and I like it...and I'm sticking to it, LOL!
However, I do think it might be a good bellweather in that it represents homes, moving and commerce, in general.
IKEA=doom, groovy......
That would be, 'coolie' mine... Which ain't too coolio...
Jim Cramer's solution: "Limit orders, limit orders, limit orders!" He will probably keep saying that unless ISIS invades the CNBC studio.
Limit orders eh? Tell that to the muppets that had their faces ripped off last Monday when some stawk headed towards zero during halts. Yup, their limit orders were triggered way way below their price. If you are holding stawks, you must like those stupid Greeks holding money in their banks. You've seen this "correction" coming for months and you have done nothing. You get everything you deserve.
Surprise surprise surprise
A Gomer 'Pyle' economy.
soooo whose going to be the first contestant today on CNBC's "punting on september liftoff to raise interest rates"???
What manufacturing? 2% of 0 is still zero.
Burger assembly.
Well, my shoes, they comes from Singapore
My flashlight's from Taiwan
My tablecloth's from Malayisia
My belt buckle's from the Amazon
You know, this shirt I wear comes from the Philippines And the car I drive is a Chevrolet It was put together down in Argentina By a guy making thirty cents a day.
Well, it's sundown on the union And what's made in the USA Sure was a good idea 'Til greed got in the way.
My clients include an aluminum producer (production in the U.S.), a plastics extruder (production in the U.S.) a corrugated paper manufacturer (production in the U.S.) and a ceramic tile manufaturer (production in the U.S.). All profitable, all at or near capacity.
But since the collapse is neigh upon us, protect yourself with a Henry rifle, oh, yeah, that's right, made in the U.S.
Landscaping
gosh it's almost like some people knew what the numbers would be ahead of time
Once again, a reading over 50 indicates growth. "Slower growth in manufacturing" is not the same as "Manufacturing Plunging."
The trend and macro drivers are what count looking forward.
Of course, you never know, any "numbers" without trustworthy independent review and validation may be as phony as LIBOR, etc...
May just be muppet propaganda to drive volatility. Market driving propaganda is based on maximizing the profits of whichever "JustUs clique" is currently in the drivers seat - acquire productive/appreciating assets going up, acquire productive/appreciating assets going down, mitigate risk, minimize uncertainty.
Part of “Always shear the sheep, never slaughter them.”
I guess that means house flipping has jumped the shark.
They are running seminars here in one of the hottest markets in the country. I hate those bastards. Unless they are the fixer-upper type flipper they add no value to the market. As a free market guy I do not want to ban what they do, which is practically impossible but I can hate on them.
They will once again get burned in the economic lag, too. They will take lots of people with them.
Hey guys Fox News just reported and this is substantiated by the American for Prosperity think tank that a guy in NJ used their EBT card in a strip club.
I think that DRUDGE is going to pick the story up asap.
This is such a minor problem that I don't give a shit if he got bj's, hj's or zj's using his EBT card. The problem is all (and I mean all) politicians in DC are bought and paid for by various coporations and wealthy families. But I doubt Faux News will explain the true problem and keep you distracted by the minor (and by minor 0.000000000000000001%) of fraudulant use of federal money.
Getting a lap dance is a fundamental right.
-Deez Nuts
Lap dance and a dozen eggs. That's how you do it.
He trickled economics down her lower back and butt crack.
WTF is going on? Bad news is supposed to be good...our overlords need to be more explicit with their plans & clearly communicate so we can build up our assets no
Come on! Greedy people are not inclined to share!
Just add a few more EPA created disasters to boost GDP.
OT: I love how this site is running the Secure America Now aka AIPAC how the Iran deal gives money to terrorists. What about all that money given to the various countries on the Arabian peninsula that was funneled to Al-Qaida
Its pure supply...we have built to much...vs Demand..it is slowing down as we have nothing to spend nor want to spend anymore....
but but bad news is good for stocks - are the ppt sleeping - sure hope all them ebt cards keep working
you're missing the big story here, prices are fucking crashing
News to me where I live. Prices are nothing but up here.
go look at the numbers, prices are at 39 for manufacturing down from 44. this means that margins are being blown. customer inventories are full (from 44 to 53). what this tells me, at least, is that there is no real demand unless shit's on sale for dirt cheap right now. and that's what's being chased. if you want to kill manufacturing this is how you do it. trying to make up the loss with more volume.
Because instead of shearing the sheep, they have slaughtered them.
Barry's "Legacy."
The Middle Class consumer has been decimated down to 10-20% of its former number. It's no wonder sales are in the toilet.
Meanwhile, cHaLkIe the butt fuck is up in 'Laska changing some name of a fucking mountain...
Jesus Tits the U.S. is so fucked....
Hike, Yellen! Hike!
HAHAHAHAHAHAHA
who ya gonna trust?
a free market capitalist american financial stats where one minute the sky is falling only to have another back-up report say the planet is rising
or, a mirror of the china's 'bubbles tripod'orama' downfall, when either could be swapped-out for the other in reality...
You rubes! GET OUT THERE AND SPEND!!!!!! oh wait, Collage loans got you in a Pickle? Hows that free Healthcare you were promised, not so free huh? taxes up? yup sure are, food prices through the roof, yup sure are...BUT GO SHOPPING!!! SPEND!!!.
if we here in La la land can see this the cock sucking Fed should be able to as well!
"The percentage you're paying is too high priced, while you're living beyond all your means,
And the man in the suit has just bought a new car, with the profit he's made on your greens...."
indeed. mr. hi-heels
Where do they make anything still. I didn't see anything in Pittsburgh, LA or Brooklyn being made. I guess they mean bagels and pizza and stuff like that.
But food supermarkets appear to be selling at full capacity, and at higher prices. Often the non-name brand items (e.g. bleach ,etc. ) are sold-out every day leaving nothing but Chlorox name brand on the shelves at twice the price. Will hyperinflation become an issue, if so, isn't buying the thing to do stat?
Plunging manufacturing and increased joblessness is very bullish for this rekovery.
Automobile inventory & sales. Those are the upcoming numbers I am looking forward to seeing.
I'm starting to think I should be invested into liquor instead of silver.
silver lasts longer than booze.
I didn't think any of this mattered because we are primarily a service based economy now.