Yesterday the Institute for Supply Management reported
(http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942)
that manufacturing activity shrank for the fourth consecutive month.
The numbers appear below. Anything under 50 = Contraction.
Jan 2008.....50.7
Feb 2008.....48.3
Mar 2008.....48.6
Apr 2008.....48.6
May 2008.....49.6
The chart reveals a longer southbound trend.
Purchasing Managers’ Index
(Click on chart to enlarge)
Recessions shaded
Manufacturers’ capacity utilization is moving in the same direction. If manufacturing continues to contract – in addition to the severe decline in residential construction – it’s increasingly difficult to see how the economy is going to make any headway.
(The chart was taken from http://www.beyourowneconomist.com. [Click on Seminars and then Charts.] Go there for additional charts on the economy and a list of Economic Indicators.)
© 2008 Michael B. Lehmann
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