Yesterday the Institute for Supply Management reported
that manufacturing activity shrank for the fourth consecutive month.
The numbers appear below. Anything under 50 = Contraction.
The chart reveals a longer southbound trend.
Purchasing Managers’ Index
(Click on chart to enlarge)
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