US manufacturing persists in recession mode, production falls
CFO Dive
SEPTEMBER 3, 2024
Producers, responding to “election uncertainty” and monetary policy, held back on capital investment last month, the Institute for Supply Management said.
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CFO Dive
SEPTEMBER 3, 2024
Producers, responding to “election uncertainty” and monetary policy, held back on capital investment last month, the Institute for Supply Management said.
CFO News Room
JANUARY 4, 2023
The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index fell to 48.4 The survey suggests the manufacturing sector contracted in December (see the first chart). manufacturing sector again contracted, with the Manufacturing PMI at its lowest level since the coronavirus pandemic recovery began.
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Manufacturing output – about 74 percent of total output – posted a 0.6 From a year ago, manufacturing output is up 1.4 Manufacturing utilization fell to 78.9 Utilization may be plateauing near the long-term (1972 through 2021) average of 79.6 percent but remains well below the highs of the 1970s when it was above 88 percent.
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The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index fell to 50.2 Still, the level is down sharply from the March 2021 peak, suggesting the manufacturing sector was essentially unchanged for the month (see the first chart). percent in October, slightly above the neutral 50 level.
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Manufacturing output – about 74 percent of total output – posted a 0.1 From a year ago, manufacturing output is up 2.4 Manufacturing utilization was unchanged at 79.5 Overall, industrial output fell in October while manufacturing output rose on a gain in motor vehicle production; many other areas were weak.
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The softer expansion is consistent with the ISM manufacturing-sector survey results (see top of first chart). Manufacturing new orders also ticked down in January and have weakened noticeably since March 2021 (see bottom of first chart). The manufacturing employment index posted a 0.6-point percent from 62.1 percent in December.
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The December ISM surveys suggest a contraction in the services and manufacturing sectors, a very ominous sign should the results persist in the coming months. . The December results are now in line with weakness in new orders in the manufacturing sector (see bottom of first chart). points to 54.7 (see see top of second chart).
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