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.)
(To be fully
informed visit http://www.beyourowneconomist.com/)
© 2012
Michael B. Lehmann
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