Posted on 01/02/2009 4:20:46 PM PST by TigerLikesRooster
Manufacturers suffer record declines in activity
By Krishna Guha in Washington, Michael Mackenzie in New York and Chris Bryant in Berlin
Published: January 2 2009 19:23 | Last updated: January 2 2009 19:23
US manufacturing activity contracted at its sharpest pace for nearly 30 years in December, a closely watched survey suggested on Friday, underscoring the downward momentum in the economy at the turn of the year.
The Institute for Supply Managers survey index declined in November from 36.2 to 32.4, much worse than expected, while new orders and production measures hit their lowest level since the survey began in 1948.
It coincided with manufacturing data that highlighted the sharp synchronised decline in economic activity around the world, with manufacturing suffering severe pain.
JPMorgan’s global purchasing managers index on Friday showed manufacturing activity falling to its lowest level since the survey began 11 years ago.
A PMI survey compiled by broker CLSA showed China’s manufacturing activity contracting for a fifth successive month while the South Korean government said exports slid 17.4 per cent in December after a revised fall of 19 per cent in November.
The revised version of a closely-followed eurozone survey showed manufacturing activity hitting a new low of 33.9 in December – the lowest since the PMI was created a decade ago.
(Excerpt) Read more at ft.com ...
Ping!
This is not a problem. We don’t manufacture anything in the U.S., anyway.
Back then we had a tiny fraction of the worlds people but produced nearly half (or more) of the world’s goods.
How true, and with our sky high corporate tax rate, it will stay that way.
I really hate having to register at a site just to read a damned article. No thanks.
We’re good at providing Liberal schmucks like Pelosi, Reid, and the Muslim Messiah that will cure all life’s woes. Who needs to manufacture anything when we have a new Savior?
What people are missing here is WHY we produced half of the world’s goods.
It is because we bombed the industrial capacity of Germany and Japan into dust, and the labor unions in the UK demolished their economy from within.
We were left as winners of the economic battle.
And then thanks to the Marshal Plan, we were able to use reconstruction of the vanquished countries as a customer for our manufacturing base.
This is why Kondratieff had his major 60+ year cycle often ending in war. The surplus capacity ends up being destroyed before a new growth cycle can begin.
The economy is already turning around, as evidenced by the slowly rising stock market in recent weeks. (relatively speaking, that is)
The stock market knows what I know... which is that you can’t surpress the spirit of Americans for too long before it entrepeneurs its way back to profitibility.
Plus the low gasoline energy prices have made people suddenly feel a little richer than they did a few months ago when it cost $80 to fill up the average car.
Thirdly, the incessant doom and gloom over the economy will soon end when the media begins to focus on boosting the “Obama economy”.
Thus, everything will soon be turning up roses on CNBC and stocks will go up.... and CEO’s will feel better, as will those whose IRA’s and 401Ks have been cut in half.
I think he might disagree.
Just change the word “false” in the link to “true”
Now try it below and it should give you the full story:
We do manufacture some things.
My company manufactures and sells communications equipment around the world. Whether that continues to be the case is yet to be seen...
BINGO, It is just something I never do!!
This is not as bad as it sounds.
With Just-In-Time being used by everyone, this could just as easily ramp up next month to a more normal level.
They didn’t have JIT in 1948.
Well, we’re still the largest manufacturer in the world, and at least here in Seattle jobs are still plentiful... In fact, the local drive in chain Dick’s is hiring people at $9.50 per hour to start, with health and education benefits and paid vacation.
The fact that many would rather make unemployment ($10 per hour) says more about the work ethic of many of those who are unemployed than the state of the job market...
Restoring manufacturing is vital to the future of this country, preferably non-predatory eco-manufacturing such as first-rate recycled steel, etc.
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).
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