Purchasing Managers Report That Production Declines Yet Again

Today brings some more sobering news on the economic front. The monthly Purchasing Managers Index declined yet again in September, capping a ten-point drop over the past year. It is now well below 50, the point at which activity is not merely growing slowly, but actually contracting:

Virtually every subindex declined in September, as did 15 out of 18 industries (the three exceptions were Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Chemical Products).

Over the past four months, production is down, employment is down, inventories are down, customer inventories are down, prices are down, exports are down, and imports are down. All are below 50. “Global trade remains the most significant issue,” said the chair of the ISM, “as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth.”

If global trade weren’t in such a rut, all of these indexes would likely still be expanding. Thanks, Donald.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

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