Skip to comments.Manufacturing drop “sharpest” in 3 years in August
Posted on 09/04/2012 8:09:10 AM PDT by SeekAndFind
While Democrats continue to fumble the "better off" question, new economic indicators provided even more of a challenge to Barack Obama and his surrogates as the Democratic National Convention opens today. Manufacturing dropped in August more sharply than any time in the last three years of recovery, and construction contracted at the fastest rate in a year. Reuters manages to avoid the "U" word, although CNBC had it on the front page:
U.S. manufacturing shrank at its sharpest clip in more than three years in August while U.S. construction spending in July fell by the most in a year, new reports showed on Tuesday.
The Institute for Supply Management said its index of national factory activity fell to 49.6 in August from 49.8 in July.
The reading fell shy of the 50.0 median estimate in a Reuters poll of economists. A reading below 50 indicates contraction in the sector.
On Friday, just hours after Obama’s acceptance speech, the Bureau of Labor Statistics will release the jobs report for August. The ISM index portends a bleak report:
The index’s employment component fell to 51.6, the lowest since November 2009, from 52.0 in July.
New orders, a forward-looking sub-index, fell to 47.1 in August, the worst showing since April of 2009. It stood at 48 in July.
Construction looks just as bad:
U.S. construction spending fell in July from June by the largest amount in a year, weighed down by a big drop in spending on home improvement projects.
The Commerce Department says construction spending declined 0.9 percent in July. It followed three months of gains driven by increases in home and apartment construction. New home construction rose again in July, but spending on home renovation projects fell by 5.5 percent.
Can’t blame me for the dropoff in home renovation projects — I’ve spent thousands of dollars in redoing the house, after 14 years of the status quo. Obviously, I’m more the exception than the rule. Renovation takes either a willingness to spend savings or take loans, both of which require a certain level of optimism about one’s personal economic situation as well as the overall economy. Clearly, that optimism has dropped. We’re now going back to the first months of the recovery, or even the recession itself when it comes to new manufacturing orders.
Democrats had better have an answer for these indicators and the overall economy during the next three days. If they wait until the jobs report to start talking about the economy and a second-term Obama agenda in any serious way, they’ll likely have to play even more defense over the next two months. The juxtaposition of Obama’s acceptance speech and the August jobs report make this the most critical in the cycle for Obama.
Update: Don’t expect much about second-term agendas, Major Garrett reports for National Journal. The very mention flummoxes Democrats in Charlotte:
The easiest way to trip up a Democrat in Charlotte for the national convention is to ask him to answer this question: What is Obamas vision for a second term?
The placeholder answer, of course, is creating an economy built to last. But this talking point has, even to Democrats, begun to wear thin. Its often repeated, but lacks definition.
Nobody really knows what that means, said Joe Trippi, a Democratic strategist who handled Jerry Browns gubernatorial campaign in 2010. So even though Obamas reelection slogan is Forward, theres not much talkat least not yetof what the country would move forward toward, or of the specific policies that Obama would enact to propel the nation up and out of the current low-wattage economic recovery.
That’s because it’s become increasingly clear that Obama himself doesn’t know how to do that. His Obama recovery barely materialized, and now it looks as though it’s fading even faster than Hope and Change.
record high on food stamps
Dems say US is better off than 4 years ago
I find this totally astounding. The unbounded and incalculable ignorance of the American people has reached truly Galactic levels.
Unexpectedly? Did these people not realize that Obama is still in office?
RNC...get to making the ads with all this “good” economic news.
“Dems say US is better off than 4 years ago”
And they claim Reps are LIARS?
The Romney campaign needs to hit the air with ads just listing these things. Most people still don’t get it.
Hmmm. . . historical examples of "economies built to last" (in terms of the duration they managed to pull off): bartering supported by hunter-gatherer food production, slave-using agrarian economics, Confucianist economics (scholars as land-owners, merchants as the underclass), feudalism, . . . (but hey, under all of these, you could pretty much guarantee your kids and grand-kids could do the same job you did during your life-time -- well except the Confucianist model where the examinations provided some social mobility both upward and downward).
Isn’t that the old “personal” approval they fall back on when their folks suck?
The proper response to that, of course, is "Why didn't he do that in his first term?".
Obama and the Democrat Party are doing a great job destroying American jobs and the USA economy. It is fitting that the Lord is dumping heavy rain from the skies this week in Charlotte on “dirt bag” Obama, his evil wife, Michelle and all of the Democrat low life that wished ill weather on the RNC last week!!! And....add the horrible manufacturing numbers out today, the raging unemployment, the failing economy, that ballooning federal debt....and it is a wonder that any sane American would give these Democrat Buffoons the right time of day!!!
I, for one, will not watch “Black Racist & America Hater”, Michelle Obama this evening. In fact, I, will not watch one second of these rabid America haters and destroyers at the DNC tell us how great life is while they work earnestly to destroy our great nation. ABO= Anybody-But-Obama!!!!
I never knew Obama was a season though.
I hope the dems trumpet how great things are all week. that way the people can sit back and say, “really? you guys think this is good?”
“Rebuilding America” is going to be one of their talking points, conveniently forgetting that they haven’t finished the demolition phase yet.
The stadium is all about bringing back the image of the messiah. People will faint again, as planned. Chris Mathews will wet his pants again. Blah blah.
There are seasonal adjustments. But construction spending is down and Eurozone manufacturing blew too.
Yes—expected. Even big, globalist manufacturing cannot stand against the many federal (and local) regulations and socialist burdens against manufacturing (regulations and taxes brought, in part, by members of big manufacturers’ families, friends, local anti-competition efforts, all).
We’re morally bankrupt, and we have it coming. But a few of us are also Americans with some culture from way back (first Protestant colonies). We’ll ask forgiveness for our evil ways and start doing some good. Maybe we’re part of a needed housecleaning process and will be better for it.
Watch who rises from the difficult process. Might surprise many.
ALL TOGETHER NOW: