ISM Manufacturing Index Remains Below Neutral In September

U.S. Factory Contraction Got Worse in September

The trade war is also hurting economies around the world.

And though a lot of this is probably due to a fundamental roll-over in the USA business cycle, the big concern for U.S. manufacturers, according to the ISM Report, is clear: "Global trade remains the most significant issue". "Overall, sentiment this month remains cautious regarding near-term growth", said Timothy Fiore, chair of ISM.

The Institute for Supply Management's purchasing managers' index fell to 47.8% in September - the lowest level since June 2009 and a contraction. Jobs created fell to 135,000 in September, while there was also a massive downward revision to the August number.

Wall Street stocks tumbled on Tuesday as a dismal report on manufacturing exacerbated fears that the slowing United States economy could tip into recession.

While manufacturing makes up just over a tenth of gross domestic product, slowing in the sector combined with cooler business investment and economic growth puts the longest-ever American expansion in a more precarious position.

The overall index number was bad, but more worrisome is the report's drop in factory orders of exports, said Torsten Slok, chief economist at Deutsche Bank.

"The U.S. economy is at the precipice of an economy-wide contraction in output", Raptis said. These industries are food, beverage and tobacco products, miscellaneous manufacturing, and chemical products.

"A sub-50 ISM does not imply overall recession in the US - a sub-44 ISM would". What's the strategy now?

The other narrative, repeated ad nauseam by analysts in the reporting today on the manufacturing downturn, is that it's the trade war that's driving this. One survey respondent said that lower demand for products ordered had prompted the company to cut 10% of its workforce. Any cracks in that sector suggest the USA economy is getting closer to falling into recession. Now Trump has to campaign against a similarly weak backdrop.

To make matters worse, the USA yesterday won approval to slap additional tariffs on imported European goods. The export order portion of the index hit 41.0, the third straight month of contraction. Many European economies are teetering on the verge of recession and China's economy has weakened as the trade fight has intensified, drying up demand for US products and making it more expensive to import some parts from China.

While any reading above 50 indicates growth, the September level was the lowest for the ISM services index since August of 2016.

The strike at General Motors also likely contributed to the worsening manufacturing picture in September, when 46,000 workers stopped working, forcing the major automaker to halt production at its facilities. But it may still be too early for alarm, as "so far at least, the less-export-oriented non-manufacturing parts of the economy have remained reasonably solid", he wrote.

Analysts warn that could change, however, if the "we're hiring" signs that have been so prevalent in many communities begin to go away and Americans think their job prospects are declining.

"As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected", Trump said on Twitter.

The Fed has lowered interest rates for the first time in a decade in an effort to counteract the harm of Trump's trade war.

Related News:

  • Sterling named in England squad

    Sterling named in England squad

    Abraham will be expected to retain a place in Chelsea's line up for their latest domestic clash away at Southampton this Sunday. Nigeria coach, Gernot Rohr, had admitted recently that Abraham and Tomori were not part of his immediate plans.
    Here's a closer look at the specs for the Surface Duo

    Here's a closer look at the specs for the Surface Duo

    In a demo, Microsoft showed off how opening an app on one side of the screen, will automatically reflow it onto the second screen. In Windows 10X , which will run on dual-screen devices, when you first open an application it will occupy just one screen.
    World Trade Organisation WTO slashes forecast for trade growth as conflicts mount

    World Trade Organisation WTO slashes forecast for trade growth as conflicts mount

    As China slapped retaliatory tariffs on $75 billion of American imports, President Trump threatened to extend tariffs to $550 billion worth of Chinese imports.
  • Google offers incognito mode for Maps in privacy push

    Google offers incognito mode for Maps in privacy push

    Google Assistant will be getting an update next week that will allow users to check their privacy settings with voice commands . Now Google is officially rolling it out so you can keep your activity and search data off your Google account.
    Samsung Stops Production of Phones in China

    Samsung Stops Production of Phones in China

    Some companies have recently shifted from producing their goods in China due to the economic recession and rising costs of labor. Samsung, the world's top smartphone maker, said it had taken the hard decision in a bid to boost efficiency.
    House Democrats to Subpoena White House for Ukraine Documents

    House Democrats to Subpoena White House for Ukraine Documents

    Trump assailed Schiff, declaring the House Intelligence Committee chairman "a low life" who should be arrested for "treason". The session was expected to address Ukraine-related documents that have been subpoenaed by House committees.
  • UAW strike could cost GM about $1 billion - and counting

    UAW strike could cost GM about $1 billion - and counting

    Just like in Canada, the Mexico plant is facing a parts shortage with US plants being shut down as the strike continues. The strike has also forced GM to idle some Canadian workers and many suppliers have been forced to halt operations.
    Hrithik Roshan starrer ‘War’ collects highest opening day figure of ₹51.50 cr

    Hrithik Roshan starrer ‘War’ collects highest opening day figure of ₹51.50 cr

    The previous best opening day of all time was the Aamir Khan and Amitabh Bachchan starrer Thugs Of Hindostan . The Marvel Studios movie, released in April this year, collected Rs 53.10 crore on its opening day.
    Chelsea's Pulisic 'very frustrated' with lack of playing time

    Chelsea's Pulisic 'very frustrated' with lack of playing time

    "We've been waiting for it", said Lampard . " We have to keep pushing, and working hard, and I think we can do that ." . Moments later, Alonso fired his own effort wide off a pass from fellow fullback Cesar Azpilicueta.
  • Vigil for Jamal Khashoggi held at Indiana State University Wednesday

    Vigil for Jamal Khashoggi held at Indiana State University Wednesday

    It is believed that the Saudi government had ordered his death for being openly critical of the country's crown prince. Khashoggi's fiancee, Hatice Cengiz said she waited for Jamal to come out of the consulate building a year ago.
    Mike Pompeo confirms he was on Trump-Zelensky call

    Mike Pompeo confirms he was on Trump-Zelensky call

    With their deep knowledge of Ukraine, testimony by Yovanovitch and Volker could be especially important to the impeachment probe. Giuliani said he sent the documents to Pompeo, who told Giuliani he would refer it for investigation, according to CNN .
    Start Time and How to Watch Surface Launch

    Start Time and How to Watch Surface Launch

    He said that Windows 10X is made for both dual and folding-screen devices and will run desktop applications in containers. Microsoft's stripped-down Windows will be called Windows 10X and not Windows Core OS as we previously thought.

Most liked

Kris Jenner and Kendall Jenner Have Today's Most-Liked Kardashian Instagram Photos
However, little information on Kardashian Kloset (and where exactly those profits will be going) is available as of now. In a video, the Good American designer shows off a Treasured Armenian Recipes cookbook .

South Africa's private sector contracts again in September - PMI
Firms saw an extension of the decline in new orders during September, recording a 15th successive monthly fall in total demand. At the same time, business confidence sank to one of the lowest levels seen in over two-and-a-half years.

Dallas cop gets 10 years for killing neighbor
Day, Guyger texted another officer about their lengthy shift as attendees celebrated the black civil rights activist's legacy. Another prosecutor said jurors shouldn't sentence Guyger to less than 28 years, which is how old Jean would have been today.

Call of Duty Mobile Not Loading or Stuck Temporary Fix
The prices of the in-app purchases range from an ultra-cheap and reasonable 99 cents all the way up to an insanely expensive $100. You can play Call of Duty: Mobile on many devices, including older iPhones , iPads , and Androids, but there is a clear cutoff.

Fortnite 2.38 Update Patch Notes Revealed
The overtime challenges are called 'Out of Time , and start on October 8, running until October 13. There were very few changes to the game and the main one was the return of the Flint-Knock Pistol.

Shinwari, Babar strike as Pakistan draw first blood
As far as the series is concerned, the first ODI was abandoned without a ball being bowled due to incessant rain in Karachi . Hello and welcome to the ball-by-ball commentary from the second one-dayer between Pakistan and Sri Lanka in Karachi .

There's a lot of noise behind Rams-Seahawks division game
The Seahawks and Rams played two pretty close games last season, but the talent gap between the two teams was still obvious. No matter how some players might feel about them , these mid-week divisional matchups are always fun.

Google launches Password Checkup; here's how to use it on your Chromebook
That extension has been downloaded by more than 650,000 people and has been used to scan 1.5 percent of overall sign-ins. But Google will now include the feature in its password manager app.

Stocks down: Dow slides more than 500 points as economic concerns flare
Activision Blizzard Inc dropped 1.2 per cent after Bernstein downgraded the videogame maker's shares to "market perform". The Nasdaq Composite Index dropped 1.8 per cent, while the Dow Jones Industrial Average slid 2 per cent.

Anti-govt protests leave six dead, hundreds hurt in Iraq
But they soon turned violent after security forces repelled demonstrators with water cannons , teargas and live ammunition. Dozens of university graduates unable to find jobs in the corruption-plagued but oil-rich country also joined the rallies.

Australian interest rates cut to record low of 0.75 per cent
Interest rates have dipped below one per cent for the first time in Australian history, hitting a record low of 0.75 per cent. Speaking in the NSW Northern Tablelands town of Armidale on Tuesday night, Dr.

Schwab commission-free trading for RIA clients
Investors will benefit from lower costs after the moves announced Tuesday by TD Ameritrade and Charles Schwab. Here we have overlaid the share price development of Ameritrade and E-Trade since the beginning of the year.

Shankland named in Scotland squad
McGinn, now with Aston Villa, scored his first for Scotland in the 2-1 defeat by Russian Federation . He scores goals with his head, left foot, right foot.

RIP Kim Shattuck of The Muffs
Kim's death comes just two weeks before The Muffs were set to release their first album in five years, " No Holiday ". They released their debut EP this year, with all profits going to encourage the ALS Association Golden West Chapter.

Apple News Plus is now available in the UK
News+ is not the first subscription news service on the market, with a number of smaller competitors already established. Magazines and publications in Australia include The Australian , The Daily Telegraph , Herald Sun , more.