US Manufacturing Sinks Deeper into Mire, Sep. 2009 evoked

[marmar]

US Manufacturing Sinks Deeper into Mire, Sep. 2009 evoked
by Wolf Richter • May 2, 2016


The decline of US manufacturing in the cacophony of regional and national indices, which started in mid-2014, is a sight to behold. Today we got two national indices for April. Both added more gloom to the scenario.

Of the national manufacturing indices, Markit’s PMI, which is based on surveys of purchasing managers, had been the more positive one – if that’s the right word. But it too has steadily been losing ground since mid-2014, when it hovered around 57 (above 50 = expansion).

In April, the index dropped to 50.8, from 51.5 in March on a seasonally adjusted basis, which as the report put it, “signaled the slowest improvement in overall business conditions” since September 2009.

Output volumes compared to March were “close to stagnation,” with the “weakest rise” since October 2009. But at an annual rate, output actually fell 3% — so an actual decline in output:

Anecdotal evidence suggested that subdued client demand, uncertainty about the economic outlook, and lower energy sector capital spending had all acted as a drag on manufacturing production in April.

Reduced demand for exports hit new orders. The backlog of work declined for the third month in a row as weak new orders couldn’t keep up. And “the latest fall in unfinished business was the sharpest since September 2009.” .............(more)

http://wolfstreet.com/2016/05/02/us-manufacturing-sinks-into-mire-pmi-markit-ism/