Tuesday, June 3, 2008

Purchasing Managers’ Index


Yesterday the Institute for Supply Management reported
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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