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(29,876 posts)
Thu May 31, 2012, 12:15 PM May 2012

U.S. Business Activity Expands at Slower Pace as Orders, Production Cool

By Lorraine Woellert - 2012-05-31T14:11:24Z

Business activity in the U.S. expanded in May at the slowest pace in more than two years as orders and production cooled.

The Institute for Supply Management-Chicago Inc. said today its barometer decreased to 52.7, the lowest since September 2009, from 56.2 in April. Readings greater than 50 signal growth. Economists projected the purchasing managers’ gauge would rise to 56.8, according to the median of 55 estimates in a Bloomberg News survey.

While demand for automobiles continues to fuel factory output, the debt crisis in Europe and a slowdown in China may cause some businesses to cut back on spending and hiring. Stocks fell, sending the Standard & Poor’s 500 Index toward its biggest monthly decline since September.

“When you’re in a fragile economy and the world around you is showing severe stress fractures, it’s going to impact us,” said Tom Porcelli, chief U.S. economist for RBC Capital Markets in New York, the top-ranked forecaster for the Chicago index. “You’re seeing those headwinds flow fully through the U.S. economy.”



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U.S. Business Activity Expands at Slower Pace as Orders, Production Cool (Original Post) Purveyor May 2012 OP
AKA: The dead-cat bounce. This was eminently predictable and preventable - n/t coalition_unwilling May 2012 #1
Call me a pessimist but, SoutherDem May 2012 #2
And if that doesn't work out for 'them', an israeli attack on Iran should do the trick. eom Purveyor May 2012 #3
Yes, I think of that as their ace up the sleeve SoutherDem May 2012 #4


(2,307 posts)
2. Call me a pessimist but,
Thu May 31, 2012, 02:21 PM
May 2012

I see the Republicans especially the Teabaggers continue to everything they can to slow, stop or crash the economy before November.

Also, I can see business owners especially those with highly regulated industries or those which receive or want to receive tax cuts make decisions which may hurt in the short term hoping for a Republican wave in November.

This is of course just my opinion.


(2,307 posts)
4. Yes, I think of that as their ace up the sleeve
Thu May 31, 2012, 03:12 PM
May 2012

I just hope no one convinces Israel that the only weapon which would guarantee success is nuclear.

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