Friday, July 20, 2012

Business Sales Stall

The Lehmann Letter (SM)
Manufacturing and trade sales have stalled according to a recent Census Bureau report:

They had been recovering well from the recession, but then they declined in April and May (the latest available data). Sometimes there’s a hiccup in the data, and that could be the case here.

But it’s not the only evidence of manufacturing weakness. The Purchasing Manager’s Index contracted in June after a couple of years of expansion and this week the Federal Reserve’s measure of industrial capacity utilization remained flat:

We have a bifurcated economy. There has been recovery from recession, but new areas of weakness may be emerging.

(Summer season: The Lehmann Letter will be in summer-vacation mode during July and August.)

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© 2012 Michael B. Lehmann

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