US is doing better now not worst! ET trolls, too bad, you lose!
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https://www.marketwatch.com/story/u...-as-ism-index-falls-to-10-year-low-2020-01-03
U.S. manufacturing slump worsens in December as ISM index falls to 10-year low
U.S. manufacturing contracts for fifth straight month amid trade war with China
The numbers: A slump of among American manufacturers deepened in December as a survey of senior executives showed the weakest performance in more than 10 years.
The Institute for Supply Management said its manufacturing index slid to 47.2% last month from 48.1% in November, marking the fifth straight contraction. It’s softest reading since June 2009 — just as the U.S. was exiting the Great Recession.
Readings below 50% indicate more companies are contracting instead of expanding.
The deterioration in December stemmed in part from Boeing BA, -0.17% suspending production of its troubled 737 Max jetliner and the residue of a recent strike at General Motors GM, -2.84% , but the report showed broad weakness in manufacturing tied to the ongoing trade war with China.
Economists surveyed by MarketWatch had forecast the index to total 48.8%.
What happened: The ISM’s index of production sank 5.9 points to 43.2%, hitting the lowest level in almost 11 years. Boeing and GM played a big role in the decline, but the most other industries reported contraction, too.
The index for new orders fell slightly to 46.8% while a gauge of employment slid 1.5 points to just 45.1%.
Only three of the 18 industries tracked by the ISM said their businesses expanded in December. That’s matches the fewest since 2009.
The index is compiled from a survey of executives who order raw materials and other supplies for their companies. The gauge tends to rise or fall in tandem with the health of the economy.
Big picture: Although manufacturers ended the year on a sour note, they hope the first phase of an agreement between the U.S. and China to resolve a damaging trade dispute leads to a further easing of tensions between the world’s two largest economies.
“Global trade remains the most significant cross-industry issue, but there are signs that several industry sectors will improve as a result of the phase-one trade agreement between the U.S. and China,” said Timothy Fiore, chairman of the survey.
The trade war hurt both countries last year as well as the broader global economy. American manufacturers began to contract at the end of the summer, though scattered signs of a rebound are staring to emerge.
What’s shielded the U.S. from further harm is steady growth in the much larger service sector of the economy. Manufacturing plays a much smaller role in the economy than it did several decades ago.
“The bottom line is that the modest deterioration in December in an already sluggish manufacturing sector is unquestionably a disappointment,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. “Even so, activity remains well above levels typically associated with a recession.”
What they are saying: “Due to sluggish sales, we have introduced promotions to generate increased sales,” said an executive at a chemicals maker.
“Starting to see suppliers try to pass on costs associated with tariffs,” said an executive at a maker of food products. “Uncertainty on the trade front continues to keep agricultural markets on the defensive.”
Market reaction: The Dow Jones Industrial Average DJIA, -0.81% and S&P 500 SPX, -0.71% fell sharply in Friday trades after the U.S. killed a top Iranian military leader.
Oil prices surged and The 10-year Treasury yield TMUBMUSD10Y, +0.00% sank 10 basis points to 1.83%.
U.S. manufacturing slump worsens in December as ISM index falls to 10-year low
U.S. manufacturing contracts for fifth straight month amid trade war with China
The numbers: A slump of among American manufacturers deepened in December as a survey of senior executives showed the weakest performance in more than 10 years.
The Institute for Supply Management said its manufacturing index slid to 47.2% last month from 48.1% in November, marking the fifth straight contraction. It’s softest reading since June 2009 — just as the U.S. was exiting the Great Recession.
Readings below 50% indicate more companies are contracting instead of expanding.
The deterioration in December stemmed in part from Boeing BA, -0.17% suspending production of its troubled 737 Max jetliner and the residue of a recent strike at General Motors GM, -2.84% , but the report showed broad weakness in manufacturing tied to the ongoing trade war with China.
Economists surveyed by MarketWatch had forecast the index to total 48.8%.
What happened: The ISM’s index of production sank 5.9 points to 43.2%, hitting the lowest level in almost 11 years. Boeing and GM played a big role in the decline, but the most other industries reported contraction, too.
The index for new orders fell slightly to 46.8% while a gauge of employment slid 1.5 points to just 45.1%.
Only three of the 18 industries tracked by the ISM said their businesses expanded in December. That’s matches the fewest since 2009.
The index is compiled from a survey of executives who order raw materials and other supplies for their companies. The gauge tends to rise or fall in tandem with the health of the economy.
Big picture: Although manufacturers ended the year on a sour note, they hope the first phase of an agreement between the U.S. and China to resolve a damaging trade dispute leads to a further easing of tensions between the world’s two largest economies.
“Global trade remains the most significant cross-industry issue, but there are signs that several industry sectors will improve as a result of the phase-one trade agreement between the U.S. and China,” said Timothy Fiore, chairman of the survey.
The trade war hurt both countries last year as well as the broader global economy. American manufacturers began to contract at the end of the summer, though scattered signs of a rebound are staring to emerge.
What’s shielded the U.S. from further harm is steady growth in the much larger service sector of the economy. Manufacturing plays a much smaller role in the economy than it did several decades ago.
“The bottom line is that the modest deterioration in December in an already sluggish manufacturing sector is unquestionably a disappointment,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. “Even so, activity remains well above levels typically associated with a recession.”
What they are saying: “Due to sluggish sales, we have introduced promotions to generate increased sales,” said an executive at a chemicals maker.
“Starting to see suppliers try to pass on costs associated with tariffs,” said an executive at a maker of food products. “Uncertainty on the trade front continues to keep agricultural markets on the defensive.”
Market reaction: The Dow Jones Industrial Average DJIA, -0.81% and S&P 500 SPX, -0.71% fell sharply in Friday trades after the U.S. killed a top Iranian military leader.
Oil prices surged and The 10-year Treasury yield TMUBMUSD10Y, +0.00% sank 10 basis points to 1.83%.
and ...
https://finance.yahoo.com/news/u-consumer-confidence-unexpectedly-drops-150638807.html
U.S. Consumer Confidence Unexpectedly Drops on Muted Outlook
(Bloomberg) -- U.S. consumer confidence unexpectedly dropped for the fourth time in five months in December, as expectations for income and job-market conditions edged down.
The Conference Board’s gauge decreased to 126.5 from an upwardly revised November reading, according to data released Tuesday that missed the median projection in a Bloomberg survey of economists. The measure of present conditions rebounded from a five-month low, while economic expectations eased.
Key Insights
The decline signals Americans remain cautious in a volatile global environment. At the same time, the index remains at elevated levels, propelled by a solid labor market, rising wages for the average worker, and a cooling trade war with China.Americans are less optimistic about the future, with drops in expectations for employment and income: the share of those seeing more jobs in the next six months dropped to the lowest level since January and those seeing a decrease in income rose to the highest level since May.For current economic conditions, the share of respondents who said jobs were hard to get increased to the highest level since June, while those saying jobs were plentiful also increased.Other recent sentiment are more upbeat, with the University of Michigan survey at a seven-month high and Bloomberg’s index of consumer comfort rising to a nine-week high on greater optimism about the economy and personal finances.
Official’s View
“While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. “While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”
What Bloomberg’s Economists Say
“Consumer attitudes have diverged from levels otherwise suggested by fresh highs in the equity market and a historically low unemployment rate. This reinforces our expectations that the holiday shopping period is likely to be tepid in final accounting.”
-- Andrew Husby, economist
Click here to read the full note
Get More
Purchase plans were mixed: The percentage of those planning to buy a car in the next six months increased to a four-month high, with more also saying they’d purchase a home, while appliance buying plans fell to the lowest since February.The average inflation rate is projected to be 4.4% in a year, the lowest reading since February.
https://finance.yahoo.com/news/u-consumer-confidence-unexpectedly-drops-150638807.html
U.S. Consumer Confidence Unexpectedly Drops on Muted Outlook
(Bloomberg) -- U.S. consumer confidence unexpectedly dropped for the fourth time in five months in December, as expectations for income and job-market conditions edged down.
The Conference Board’s gauge decreased to 126.5 from an upwardly revised November reading, according to data released Tuesday that missed the median projection in a Bloomberg survey of economists. The measure of present conditions rebounded from a five-month low, while economic expectations eased.
Key Insights
The decline signals Americans remain cautious in a volatile global environment. At the same time, the index remains at elevated levels, propelled by a solid labor market, rising wages for the average worker, and a cooling trade war with China.Americans are less optimistic about the future, with drops in expectations for employment and income: the share of those seeing more jobs in the next six months dropped to the lowest level since January and those seeing a decrease in income rose to the highest level since May.For current economic conditions, the share of respondents who said jobs were hard to get increased to the highest level since June, while those saying jobs were plentiful also increased.Other recent sentiment are more upbeat, with the University of Michigan survey at a seven-month high and Bloomberg’s index of consumer comfort rising to a nine-week high on greater optimism about the economy and personal finances.
Official’s View
“While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. “While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”
What Bloomberg’s Economists Say
“Consumer attitudes have diverged from levels otherwise suggested by fresh highs in the equity market and a historically low unemployment rate. This reinforces our expectations that the holiday shopping period is likely to be tepid in final accounting.”
-- Andrew Husby, economist
Click here to read the full note
Get More
Purchase plans were mixed: The percentage of those planning to buy a car in the next six months increased to a four-month high, with more also saying they’d purchase a home, while appliance buying plans fell to the lowest since February.The average inflation rate is projected to be 4.4% in a year, the lowest reading since February.
A U.S. Housing Market Bubble 10 Years in the Making May Pop in 2020
https://www.ccn.com/a-u-s-housing-market-bubble-10-years-in-the-making-may-pop-in-2020/
https://www.ccn.com/a-u-s-housing-market-bubble-10-years-in-the-making-may-pop-in-2020/
All depends on the comfort level of the consumer, now doesn't it? Mortgage rates low, unemployment low. peeps have money now. Yes?
Yes. Scary headlines have been with us all along the past 10 years. Sad for those who missed out.
Markets don't eventually go south while things are lousy now do they?
%% Tough question, smallfill;
since i dont have enough info to giVe an accurate ansWer , i say Republican ,conservative or common sense.LOL
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