In commenting on the Institute for Supply Management (ISM)’s latest report on the manufacturing sector of the U.S. economy, Timothy Fiore, the chairman of the committee responsible for the report issued on Tuesday, said it all:
U.S. manufacturing activity contracted again in September, and at the same rate compared to last month.
- Demand continues to be weak, output declined….
- New Orders Index remain[ed] in contraction territory….
- New Export Orders Index contract[ed] at a faster rate….
- Backlog of Orders Index stay[ed] in strong contraction territory….
- Output (measured by the Production and Employment indexes) continued in contraction….
- Employment shrunk at a faster rate.
“Business Is Flat”
Business owners surveyed by the ISM were equally candid.
- “Business is flat. Waiting for interest rates to drop and the election outcome in November before we confirm our 2025 plans. Currently planning on a flat 2025.” (Furniture & Related Products)
- “Our sales continue to be flat. Our customers are telling us that although our products perform very well, they are forced to seek lower-cost components to maintain their sales.” (Textile Mills)
- “Sales have slowed this quarter compared to the same time period last year. Adjusting production accordingly.” (Miscellaneous Manufacturing)
- “Not adding new jobs. Automotive original equipment manufacturers (OEMs) are starting to slow or cancel orders. The pace is slowing.” (Primary Metals)
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— Read More: thenewamerican.com
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