U.S. Manufacturing Shrinks for Sixth Month in a Row
The September PMI survey brings a whole slew of disappointing economic indicators regarding the health of the US economy. Factories reported the largest monthly drop in production for 15 months in response to a slump in new orders, in turn driving further reductions in employment and input buying as producers scaled back operating capacity.
September is the sixth straight month that the PMI (Purchasing Managers’ Index) was below 50, indicating a contracting economy;
Eight out of 13 industries reported slowing in September;
Index of new orders remained below 50 in September;
Its employment gauge fell in September as “firms are trying to right-size workforces to levels consistent with demand;” and
ISM’s factory index “has been in contraction territory for 22 of the past 23 months.”
