In foreboding sign for U.S. economy, factory sector softens

[DonViejo]

Source: Reuters



MARCH 22, 2019 / 10:07 AM / UPDATED AN HOUR AGO

Jason Lange
4 MIN READ

WASHINGTON (Reuters) - U.S. manufacturing activity unexpectedly cooled in March, a troubling sign for the economy although the housing market showed signs lower interest rates were giving it a boost.

Financial data firm Markit’s purchasing managers index for U.S. manufacturing fell to 52.5 in March, its lowest level since June 2017. Both new orders and output softened. Analysts polled by Reuters had expected the gauge to strengthen to 53.6 from 53.0 in February. Readings above 50 point to growth in the sector.

The slowdown in U.S. manufacturing is part of a global trend in which international trade tensions appear to be leaving their mark on factory output. Markit also released PMI reports showing factory activity contracted in the euro zone and in Japan.

The reports helped push the spread between three-month Treasury bills and 10-year note yields to invert for the first time since 2007. The inverted yield curve is widely understood to be a leading indicator of recession. U.S. stock prices also fell.

Read more: https://www.reuters.com/article/us-usa-economy/in-foreboding-sign-for-us-economy-factory-sector-softens-idUSKCN1R31Q6

[Bernardo de La Paz]

1. That explains stock market drop of about 2% today. . . . nt

[sandensea]

2. Small wonder, given the $891 billion trade deficit in goods.

[groundloop]

3. The plant I work at is laying off about 1/4 of production workers in a month

And many of them are trumpsters. Still, I even hate for trumpsters to lose their jobs.

This economy is going to tank, and it's not going to be pretty given that Tiny has no clue whatsoever what he's doing.