Consumers have largely shrugged off the trade dispute and continued to spend, propping up the economy.
Manufacturing accounts for just over 8% of all the jobs in the U.S. And the sector is more sensitive than most to the effects of a global slowdown. It was the first time in three years that ISM's manufacturing index fell below 50.
The Institute for Supply Management's purchasing managers index a closely-tracked gauge of USA manufacturing slumped to 49.1 last month.
According to Timothy Fiore from the ISM Manufacturing Business Survey Committee, the ISM data has raised additional fears amongst investors who are already anxious about the US-China trade dispute.
The index of new export orders for American companies, an electrocardiogram of trade health, fell to 43.3 in August, the ISM reported, 4.8 points down from July and the lowest reading since April 2009, when it bottomed at 42.9.
A global softening in demand, worsened by an increasingly high-risk trade war between the USA and China, appears to be hurting American manufacturers.
As much as the mainstream media has loved using the term "recession", they are actually getting some economic data that finally may help to back up their case.
Economic activity in the manufacturing sector contracted in August, and the overall economy grew for the 124th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The data has fueled concerns that the broader USA economy is weakening.
Scarlett Johansson Defends Woody Allen Amid Sexual Abuse Allegations
Allen has directed directed Johansson in several films, including " Match Point ", " Scoop " and " Vicky Cristina Barcelona ". Scarlett Johansson really knows how to rile up the zeitgeist.
Conservative MPs who opposed govt expelled from party
The government had scheduled a vote on an election to take place yesterday at about 7pm London time (2am Singapore time today). UK Labour Party leader Jeremy Corbyn said the Johnson government had no mandate, no morals and no majority.
Apple mulls low-priced smartphone to take on Huawei, other rivals
Up to this point, Apple has countered lagging iPhone sales with improved performance in its services and wearables divisions. The new model would be Apple's first low-priced smartphone since the launch of the iPhone SE in 2016, which started at $399.
The Fed lowered its short-term interest rate by 25 basis points in July for the first time since 2008, citing trade tensions and slowing global growth. A measure of production declined by 1.3 points. The August 2019 PMI is 5.3% below the 12-month average of 54.4, with August marking the lowest reading during that span and is also the lowest PMI reading going back to October 2016. That's the lowest reading issued since January 2016.
The manufacturing data and new tariffs combined to hit the stock market with big losses Tuesday.
U.S. Treasury yields fell, with the benchmark 10-year yield dipping to its lowest since July 2016 after the downbeat ISM report exacerbated worries about a weakening global economy in the shadow of the U.S.
The Commerce Department revealed on Tuesday that spending on construction projects occurred at a seasonally adjusted annual pace of $1.29trn.
The disappointing PMI data weighed on the Greenback and forced the US Dollar Index to return to the 99 mark from the multi-year highs that it set at 99.37 earlier today.
The dollar index rose 0.03%, with the euro up 0.05% to $1.0972. There were also gains in home renovations. "The good news is that the PMI really has to hit the low to mid 40's for a couple of consecutive months before the broader economy would be at risk of recession". Most sectors registered declines, with industrials leading the pack. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.
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