U.S. manufacturers experience worst month since 2007-2009 Great Recession
U.S. manufacturers experience worst month since 2007-2009 Great Recession, ISM finds
The numbers: American manufacturers posted the biggest contraction in September since the end of the 2007-2009 recession, reflecting a slowdown in the U.S. and global economies made worse by a tense trade war with China.
The Institute for Supply Management said its manufacturing index fell to 47.8% last month from 49.1%, marking the lowest level since June 2009. That’s when the Great Recession ended.
Economists surveyed by MarketWatch had forecast the index to total 50.2%.
The sharp decline in the index raised the specter of recession, wiping out early Wall Street gains and sending stocks lower. Readings over 50% signal business conditions are getting better, below 50% indicates they are getting worse.
President Trump quickly took to Twitter to blast the Federal Reserve again, blaming the central bank for keeping U.S. interest rates too high.
"As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!" - Trump via Twitter
Some economists also believe interests rates are too high, though they say the ongoing trade war is the biggest culprit.
What happened: Production, employment and inventories all declined in September. The index for new orders actually rose a tick to 47.3%, but it’s still at the weakest level in a decade.
Another bad sign: Only three of the 18 U.S. manufacturing industries tracked by ISM reported growth, down from nine in the prior month. -snip
Yet another sign that we're heading towards a recession and Trump's too busy blaming everyone except his crappy leadership and policies. So save your pennies.