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

[Purveyor]

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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http://www.bloomberg.com/news/2012-05-31/chicago-purchasers-index-fell-to-52-7-in-may-from-56-2.html

[coalition_unwilling]

1. AKA: The dead-cat bounce. This was eminently predictable and preventable - n/t

[SoutherDem]

2. Call me a pessimist but,

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.

[Purveyor]

3. And if that doesn't work out for 'them', an israeli attack on Iran should do the trick. eom

[SoutherDem]

4. Yes, I think of that as their ace up the sleeve

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