US Manufacturing PMI Drops To 8-Month Lows In May: "Sluggish Sales Prompted Firms To Scale Back Hiring"

Tyler Durden's picture

The last two months have seen a major divergence between PMI and ISM Manufacturing reports (as the former confirmed today at its lowest final print since September). May's final print of 52.7 was slightly above expectations and the preliminary print.

This is the lowest 'final' print for US Manufacturing PMI since September (while ISM rebounds)...

 

This follows China's Manufacturing PMI 'contraction' overnight...

 

US New order levels increased again in May, although the rate of expansion was the least marked recorded since September 2016. This was mainly linked to subdued client demand.

And in line with China weakness, some manufacturers also cited weak export sales, as highlighted by a slower upturn in new work from abroad than that seen in April.

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

“Manufacturing growth momentum continued to ebb in May, down to its weakest since just before the presidential election.

 

“Manufacturing output, order books and employment all grew at only modest rates as sluggish sales prompted firms to scale back hiring.

 

Exports sales remained especially lacklustre, hampered in part by the relatively strong dollar. The survey also brought signs of companies becoming more cautious about holding inventory.

 

“Factories’ raw material prices meanwhile rose at a sharply reduced rate, which should at least help take pressure off profit margins and also feed through to weaker pressure on consumer price inflation.”

Just another broken brick in the wall of 'soft' data post-trump hope.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Osmium's picture

They can't scale back hiring, we have a labor shortage.

LawsofPhysics's picture

LOL!!!  Right, that must be why the average wage has been flat for fucking years...

 

...not to mention what is going on with the purchasing power of the currency that wage is paid in...

Go back to work debt slave!

GUS100CORRINA's picture

US Manufacturing PMI Drops To 8-Month Lows In May: "Sluggish Sales Prompted Firms To Scale Back Hiring"

My response and question: WHAT IS KEEPING THE S&P500 UP? Every valuation metric known to mankind is SCREEMING CORRECTION COMING SOON!!!

Osmium's picture

No really, the fed said so yesterday.  They wouldn't lie to us.

 

Latest survey of economy sees steady growth, labor shortages

http://www.marketwatch.com/story/feds-beige-book-appears-to-boost-case-f...

Hal n back's picture

what time will this be revised up?

MuffDiver69's picture

What idiot thinks this has anything to do with a President in office four months. Cutting regulations helps, but if every pro-growth policy known to man was enacted Jan.21 it would take a solid year to see results...What fucking dream world to the hacks writing this live in...

LawsofPhysics's picture

When your salary depends on you lying, you lie....

Tulak's picture

I hope after one none solid year all is fucked!PERIOD!

youngman's picture

Just like Chinas Numbers

Five Star's picture

Lest we forget, going back to 1950, on average there is less than 4 months between the cyclical peak in employment and a formal recession

http://thesoundingline.com/unemployment-how-does-a-lagging-indicator-bec...

Russdiamon's picture

That doesn’t sound like a good sign for the economy or the market. This guy has been calling for a top lately, and he’s really accurate at this kind of thing. I’ve been following him for awhile and he has called drops before well in advance. He’s worth taking a look at.

Check this out

Seasmoke's picture

Hmmm. I think this is what I just posted about it the previous employment thread. 

RedKlaxon's picture

Should be manufacturing gunboats and arms for upcomming WWISIS

decentralisedscrutinizer's picture

 

Almost all the world’s economic and political problems revolve around the hegemony of a global corporate cartel, which is headquartered in the US because this is where their dominant military force resides. The US Constitution is therefore the “kingpin” of an all-inclusive global financial empire. These fictitious entities now own the USA and command its military infrastructure by virtue of the Federal Reserve Corporation, regulatory capture, MSM propaganda, and congressional lobbying.

 

 

 

The Founders had to fight a bloody Revolutionary War to win our right to incorporate as a nation – the USA. But then, for whatever reason, our Founders granted the greediest businessmen among them unrestricted corporate charters with enough potential capital & power to compete with the individual states, smaller sovereign nations, and eventually to buy out the USA itself. The only way The People can regain our sovereignty as a constitutional republic now is to severely curtail the privileges of any corporation doing business here. To remain sovereign we have to stop granting corporate charters to just any “suit” that comes along without fulfilling a defined social value in return. The "Divine Right Of Kings” should not apply to fictitious entities just because they are “Too Big To Fail”. We can't afford to privatize our Treasury to transnational banks anymore. Government must be held responsible only to the electorate, not fictitious entities; and banks must be held responsible to the government if we are ever to restore sanity, much less prosperity, to the world.

 

 

 

It was a loophole in our Constitution that allowed corporate charters to be so easily obtained that a swamp of corruption inevitably flooded our entire economic system. It is a swamp that can't be drained at this point because the Constitution doesn’t provide a drain. This 28th amendment is intended to install that drain so Congress can pull the plug ASAP. As a matter of political practicality we must rely on the Article 5 option to do this, for which the electorate will need overwhelming consensus beforehand. Seriously; an Article 5 Constitutional Convention is rapidly becoming our only sensible option.

 

This is what I think it will take to save the world; and nobody gets hurt: 28th Amendment

 

 

 

Corporations are not persons in any sense of the word and shall be granted only those rights and privileges that Congress deems necessary for the well-being of the People. Congress shall provide legislation defining the terms and conditions of corporate charters according to their purpose; which shall include, but are not limited to:

 

1, prohibitions against any corporation;

 

a, owning another corporation,

 

b, becoming economically indispensable or monopolistic, or

 

c, otherwise distorting the general economy;

 

2, prohibitions against any form of interference in the affairs of;

 

a, government,

 

b, education,

 

c, news media, or

 

d, healthcare, and

 

3, provisions for;

 

a, the auditing of standardized, current, and transparent account books, and

 

b, the establishment of a state and municipal-owned banking system

 

c, civil and criminal penalties to be suffered by corporate executives for violation of the terms of a corporate charter.