Investor attention will be squarely focused on the pace of hiring in goods production and manufacturing in the August U.S. employment report released on Friday. The results will follow a decline in the August ISM manufacturing employment sub-index to 47.4, which implies contraction in hiring across those sectors. Amid heightened risk for industries linked ... READ MORE >
manufacturing
Latest ISM purchasing managers index signals potential recessionary territory for manufacturing sector
The Institute for Supply Management purchasing managers index—a key gauge of U.S. factory activity—dropped to 49.1 in August, from 51.2 a month earlier, hinting at the potential onset of an industrial recession. The index was pulled lower by slowing global growth due to continued economic uncertainty over trade issues. A number below 50 indicates the ... READ MORE >
RSM Brexit Stress Index: Factoring in longer-term issues
The RSM Brexit Stress Index ended higher again this week on increased volatility. The composite index, which measures economic stress surrounding Britain’s impending departure from the European Union, closed at 1.74 on Friday from 1.64 a week ago. The foreign exchange market remains focused on Germany’s manufacturing recession and the direction of ... READ MORE >
US manufacturing–slipping away
The U.S. manufacturing sector slipped closer to contractionary terrain in July, which in our estimation reaffirms the decision by the Federal Reserve to cut interest rates by 25 basis points at its July meeting on Wednesday. The top line sentiment index in the Institute for Supply Management’s manufacturing survey declined to 51.2 from 51.7 a month earlier, ... READ MORE >
US employment preview: hiring deceleration amid steady unemployment rate
The U.S. economy likely generated roughly 150,000 jobs in July and the unemployment rate remained steady at 3.7%. The July employment report—due to be released by the government Friday—is traditionally impacted by seasonal adjustments that will likely include sharp slowing in education and government hiring along with a notable pick up in leisure and ... READ MORE >
New RSM US Manufacturing Outlook Index points to manufacturing slowdown, recession risk
A new manufacturing index from RSM has been declining on trend for 14 months since peaking in June 2018, and has been negative since December of last year. The performance of the new measure, the RSM US Manufacturing Outlook Index, suggests the potential for negative growth in manufacturing sales in the months ahead. The composite index is based on ... READ MORE >
Central banks brace for economic slowdown as manufacturing reflects contraction
A slowing global economy and declining bond yields across the developed world—some negative—portend a deteriorating business climate ahead. To combat this broad slowdown, global central banks are shifting monetary policy toward more accommodative stances that include real negative rates, nominal negative rates, large-scale asset purchases and possibly ... READ MORE >
Demand for manufacturing workers remains robust, despite May’s decline in U.S. job openings
Manufacturing positions in the United States are among the hardest to fill as the labor market remains tight, a key government report released on Tuesday shows. The Job Openings and Labor Turnover Survey from the Department of Labor shows that manufacturing sector vacancies rose to a record 509,000 in May, from 496,000 in April. The numbers suggest that ... READ MORE >
Factory orders stall in latest Institute for Supply Management Index
The Institute for Supply Management index—a key gauge of U.S. factory activity—dropped to 51.7 in June, from 52.1 a month earlier, pulled lower primarily by economic uncertainty over trade issues. The index posted its third straight monthly decline and the weakest level since October 2016. The ISM’s measure of new orders fell to 50, the lowest since ... READ MORE >
Philadelphia Fed’s manufacturing gauge weakens sharply in June
A key index of manufacturing activity tracked by The Federal Reserve Bank of Philadelphia's monthly survey of manufacturers fell sharply to 0.3 in June from 16.6 a month earlier, well below the consensus of 10.4. It was the index's lowest reading since February, when it hit zero. Any reading above zero indicates improving conditions. Source: Federal ... READ MORE >