US Manufacturing Flashes "Warning Light" As New Orders, Employment Tumble

Tyler Durden's picture

Following the eurozone's disappointing drift lower in Manufacturing PMI (and weakness in German Services), August's US preliminary manufacturing PMI printed a disasppointing 52.1 (against expectations of 52.6). Weakness in Employment (lowest in 4 months) and New Orders underpin the drop from 52.9 to 52.1 as the 2 month hope-fueled bounce has faded...

Renaissance over...


Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

“The August drop in the PMI is a disappointment but less worrying when looked at in the context of July’s better than expected reading. Taking the July and August readings together suggests that manufacturing is enjoying its best growth so far this year in the third quarter, and should help drive stronger GDP growth.


“With August seeing the largest rise in exports for almost two years, the improved trade performance should also help drive faster economic growth.


“However, a slowdown in overall order book growth is a warning light that domestic demand has waned in August, and the pull-back in hiring suggests manufacturers have become increasingly cautious about the outlook. Inflationary pressures have meanwhile eased.


“Policymakers will therefore be pleased to see signs that the economy may have picked up speed in the third quarter, but the Fed looks unlikely to tighten policy again until the upturn has stronger foundations, suggesting any interest rate rise looks unlikely before December.”

Charts: Bloomberg

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white horse's picture

If you ask Clinton he/she will tell you that manufacturing is not important. We are service oriented, remember.

Omen IV's picture

military equipment  sales are the  only thing holding up the entire US manufacturing base as autos crater - disaster looming

Lorca's Novena's picture

I heard CAT is going to start making new types of miltary vehicles besides dozers... first they need to overthrow a country and create chaos!

silverer's picture

Maybe the next top seller will be grave digging machines.

Sam Clemons's picture

stocks show that nothing could be better

Sky flyer's picture

Bullish mutha fukkers! Don't even try to figure this shit out anymoar. Up, up and away!

wmbz's picture

They really need to drop this rate hike talk nonsence. It is not going to happen period.

The so called system is so fucked up it's beyond repair. So just keep going MOAR,MOAR,MOAR. Until the end...Boom!

E.F. Mutton's picture

Just providing the fodder for Yellen not to raise. Same as it ever was.


adr's picture

I'm sure 90% of the exports were crude oil and distillates that can no longer be stored in the US.

Allen_H's picture

Early retirement for everybody ! What could possibly go wrong ?

moonmac's picture

It's so freaking slow pretty soon our company will have to pay us in the goods we produce. Anyone need a 500 lb forged steel industrial part?

south40_dreams's picture

Nobody cares. Really.

silverer's picture

The 1% of ancient Rome all had the same idea. They always thought they could come up with a plan to "keep it going". But they didn't keep it going, did they?

S Spade's picture

Doesn't matter, the funny money fix is in