Skip to comments.Manufacturing slows to lowest level since 1948, the ISM Survey showed (Thanks Free Trade)
Posted on 01/02/2009 1:39:46 PM PST by shielagolden
Manufacturing slows to lowest level since 1948, the ISM Survey showed
(AXcess News) Houston - The Institute of Supply Management (ISM) December Survey revealed that the manufacturing sector continued to show no sign of growth for the fifth consecutive month while the overall U.S. economy shrank for the third month in a row.
ISM chairman of the Committee Survey Norbert J. Ore said manufacturers across the entire spectrum of companies saw a "significant decline" in activity during the month of December.
"The decline covers the full breadth of manufacturing industries, as none of the industries in the sector report growth at this time," said Ore.
The ISM noted that the Performance by Industry index (PMI) shrank 3.8% in December over the prior month to 32.4 from 36.2 in November.
New manufacturing orders shrank 5.2% in December with the ISM Survey's index of New Orders at 22.7 compared to 27.9 the previous month.
The ISM said production fell 6% in December to an Index reading of 25.5 from 31.5 the prior month.
The Survey indicated that employment was also down. The Employment Index in December was 29.9 compared to 34.2 the prior month, a decline of 4.3%.
Manufacturers inventory levels shrank 0.3% to 38.8 in December compared to 39.1 the prior month, though customer inventories rose 2% to an index reading of 57 in December compared to a reading of 55 the prior month, indicating that goods were piling up and that new orders in January would likely continue to decline.
Overall, the ISM indicated that the U.S. economy was continuing to slow. The ISM said that New Orders shrank for the 13th consecutive month to their lowest level on record since January 1948. Order backlogs have fallen to the lowest level since ISM began tracking the Backlog of Orders Index in January 1993.
"Manufacturers are reducing inventories and shutting down capacity to offset the slower rate of activity," Ore indicated.
watch this one
Like toddster always tells me— “We are a mighty importing superpower”
How is free trade really free when there are artifical limits imposed by governments and magic men around the world?
An economy is not a machine, it’s a living, breathing thing. Sometimes, it has to fight the cancer from within before it can continue to grow.
Deficits DO mater.
Free Trade has take jobs away from U.S
hiya, welcome. Since you're using parenthases already, I gather this is an alias.
Anyway...manufacturing is tanking because deep recession and years of overcapacity.
Manufacturing , its all overyseas
I'm confused. US GDP is 6 times what it was in 1948 (in real terms- It is >50X what it was in 1948 in nominal terms.)
How is manufacturing slower now than then?
tell me what we make in this county
The ghost of Willie G?
Awfully fiesty for noobie. Bad manners don't become someone who's been registered for a week or so.
go take a look at post #2
Easy money matters (Blame Greenspan)
Credit default swaps matter (blame Wall St and bankers)
Derivatives matter (blame Wall St and bankers)
Zero regulation of derivatives, naked shorting by super dunce/stooge Chris Cox matters
Total hands off markets attitude from George Bush, an alleged Harvard B School graduate, matters
Libertarians rejoice we had a totally free market in derivatives!
China doesn't have free trade. They are in the toilet too. It seems when people stop buying, the businesses that sell them products tend to fold. Oil prices crashed...no demand.
Your simple minded rant against free trade doesn't wash.
Be careful with your muck raking. Sheila is not a one note Johnny. Her posts are diversified
Free Trade has allowed Americans to grow multiple times richer than they were in (e.g.) 1950.
Protectionism is toxic. A protected industry is just a welfare project.
Of course Perot was right about NAFTA and free trade and that’s why I voted for him warts and all in 1992
She's 8 days old. You should be looking out for her.
Oh, wait, you are.
The variant of your question that zooms in on the matter is this:
How is “free trade” really free when governments can (and do) play games with the value of their currency?
eg, China’s peg of the Yuan to the dollar. After years of absurd import/export imbalances to China, we had jawbones the Chinese to relaxing their peg against the dollar to allow the Yuan to increase in value.
In the last month, as soon as it became apparent to the Chinese that this “decoupling” theory was nonsense, and that their economy depended (critically) upon the US consumer buy, buy, buying their crap... they reversed all the gains that the US dollar had made against the Yuan and announced their intent to devalue it again, which makes their exports to the US artificially cheap and the competition by US manufacturing against ChiCom manufacturing very difficult.
This is not “free trade.” It might be in the fevered minds of people like Alan Greenspan and his idiot cohorts in world finance, but it is not free trade in the sense that the US manufacturing sector has a fair and free playing field against ChiCom manufacturing. The ChiComs are stacking the deck for their entire economy.
In reality, the ONLY thing that made the ChiComs raise the value of the Yuan vs. the dollar was the price of oil in dollars. Now that oil is cheap again, we’ll be barking up a bamboo stalk trying to get the Yuan strong again.
The inevitable result of free trade and capitalism. You can’t blame the capitalists for being capitalist — profit trumps patriotism every time.
We are free traders in a Mercantilist world. Add to this the fiction our elites have swallowed that the FIRE economy could support us all, and you see what you get.
Even strategic industries are pretty much nonexistent.
God help us if we need to fight another mass war.
Government tampering with free trade causes depressions.
He’s right. B.S. Free trade hasn’t killed the economy. Fifty year of bad Federal policy and high taxes have killed the economy.
I wonder then how the US is the largest manufacturer on the planet. Double that of China. Along with being the largest exporter on the planet.
Ross Perot, Mr. Anti NAFTA, who then proceeded to move the world headquarters of Perot Systems too.... MEXICO!
Still lying I see.
Why the snide remark “Thanks free trade”? Given that free trade has not even been tried how do you make such a remark?
It would be nice to have free trade. What is the alternative? Would you have the government forcing us to buy products from each other? Please name the industries that have been successful when the government decrees that we have no choice but to buy their product? Education? Steel? Cars? Sugar?.
Why is manufacturing always the favorite child? Using the same anti free trade logic lets restrict ourselves to only domestic energy sources. Let's restrict ourselves to only domestic investment (no foreign capital).
You will really enjoy an economy ran by union bosses and political apparatchiks.
Was Ronald Reagan wrong to protect Harley during the 80’s?
“I’m confused. US GDP is 6 times what it was in 1948 (in real terms- It is >50X what it was in 1948 in nominal terms.)”
These arent recession numbers, not even depression numbers. We’re watching a full scale worldwide economic collapse.
If you remove food from the numbers where are we in the rankings?
The only thing we manufacture anymore is Liberals. In our schools.
Happy New Year
2009.... a new year to see your theories flop harder. Don’t bet on them big though or you’ll be off to the almshouse
Hey, I expect the Deadheads to start trying to convince us to invest in buggy whips any day now. At the rate this economy and FREE trade is going, it will be a booming industry!
“Protectionism is toxic.”A protected industry is just a welfare project.”
What do you think these thousand page ‘trade’ agreements do? They protect certain industries and assure them cheap labor....You’ve just demonstrated they are not FREE TRADE.
It's THANKS Demomcrats!
You insist on dumbing down kids in school so we slip to 24th and 25th in Math and Science among the industrialized countries in the world. So what do these IDIOTS clamor for? Dumbed down jobs like manufacturing! The problem is the these other countries don't have UNIONS, can't be BAILED OUT because of HIGH COSTS of GREEDY STUPID PEOPLE that work for these companies.
I am SICK AND TIRED of seeing CAPIALISM DESTROYED by idiots that try to blame “free trade” for STUPID AMERICANS that REFUSE to BETTER THEMSELVES from THIRD WORLD COUNTRIES. This is not the 1930’s or the 1950’s. America must MOVE UP in education and KNOWLEDGE. so they can be competitive and have a future. Get out of the PAST. Third world countries are eating your lunch - MOVE ON!
A trained monkey can do those jobs!
That's WHY manufacturing jobs are overseas.
Surely America can do better and HAS TO DO BETTER.
Overseas they have a lower cost of living and aren't as greedy as the uneducated monkeys over here clamoring for monkey jobs.
“God help us if we need to fight another mass war.”
Yep. There ya go thinking about the future....you must learn to be a good ‘instant gratification’ free traitor...or else!
But to be restored, manufacturing has to become an attractive career for bright young and older people to pursue.
And if any restored manufacturing is to be retained we have to restore our traditional (traditionally Conservative and Republican) National Tariff (import tax).
So has illiteracy.
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