US manufacturing activity slowed more than expected in June, with Scale of new contract orders for The first time in Two years, signs that economy He was cold in the midst of aggressive criticism policy Tightening by the Federal Reserve (Fed).
Survey from the institute for Supply Management (ISM) on Friday also Show scale of Contracting work in the factory for a second straight, despite the “overwhelming majority” of Companies indicated they were hiring.
deceleration in Manufacturing follows on the heel of moderate consumer spending growth in May as well as weak dwellings, building Factory production permits, which left Some economists expect that economy contractor again in The second quarter After the decline in GDP in The first Three months of The year.
“Investment spending is starting to weaken, and it’s just adds To proof that the United States economy “It’s slowing down fast,” said Shannon Serry, an economist at Wells Fargo. in New York.
ISM Scan Index of national Factory activity decreased to 53.0 last month, the lowest reading since June 2020, when the sector was rebounding from the COVID-19 downturn. that followed the reading of 56.1 in mayo. A reading above 50 indicates expansion in Manufacturing, which accounts for 11.8% of United State economy.
Economists polled by Reuters had expected the index to fall to 54.9. some of moderation in Factory activity reflects a transformation in spending back On the services of merchandise.
everybody of The six largest manufacturing industries – computer Electronic products, machinery and transportation equipment, petroleum and coal products, food and chemical products – are registered as moderate to strong growth.
Fed last raise her month policy rate three quarters of percentage point, the largest increase since 1994, to suppress high inflation. other similar size rate expected height in July. Central United States bank Standard interest increased overnight rate by 150 basis points since march.
ISM scan forward-seek new The orders sub-index fell to 49.2 from the reading of 55.1 in mayo. that was first decline in Indicator below Level 50 since May 2020.
US stocks were trading minimum. The dollar Has risen against Basket of currencies. US Treasury bond prices were higher.
Softening commands
slow orders growth It has been a recurring topic among most companies, with Only a few, including transportation equipment Manufacturers and electrical equipmentmakers of hardware and components, saying demand The ISM survey showed a strong shadow.
Food producers reported thatbusiness Slower than expected in volume, “although they were”already Receiving large orders for The autumn. ‘Machine producers said’ our suppliers are seeing softening of Request #%s.”
However, manufacturers have a lot of work on Hands to keep factories humming. Delay orders continued to pile up steadily pace in Jun.
anyway business Inventories have been sharply revised higher in The first quarter pioneer retailers like Walmart and Target both reported carrying a lot of merchandise, and the ISM survey still viewed customers’ stocks as “extremely low.”
makers of apparelleather and related products acknowledged the excess stock held by their customers and said they “expect orders decline in Coming months until stocks are properly settled against demand. “
Some economists realize the strong stock build last quarter K sign That supply chain bottlenecks were receding.
In fact, the ISM survey meter of Supplier deliveries fell to 57.3 from 65.7 in mayo. A reading above 50% indicates slower factory deliveries.
“This relief in Supplier delivery index can be related to the reduction in Supply chain issues but also double in said Daniel Silver, chief economist at JP Morgan in New York.
News on Inflation was encouraging. Scale of The prices that manufacturers pay to read have fallen of 78.5 out of 82.2 in mayo, supporting The view Inflation may have peaked.
Mix of waning demand It is likely that a shortage of workers will result in in Scan measurement of Factory labor declining In addition to reading of 47.3 out of 49.6 in mayo. technology companies like Tesla has been placed off Workers.
With 11.4 million vacancies around economy .in the end of April, economists warn against Continuous weakness reading in Work in the factory as a sign That the total salaries growth He was faltering.
“Purchasing managers say they are cutting employees, but layoffs they do not hit Christopher Robke, chief economist at FWDBONDS, said the weekly unemployment benefits data so far in New York. ‘The employment indicator was below 50 last A month as well and even non-farm payrolls in May for manufacturing gold up 18000″ added.
US manufacturing activity slowed more than expected in June, with Scale of new contract orders for The first time in Two years, signs that economy He was cold in the midst of aggressive criticism policy Tightening by the Federal Reserve (Fed).
Survey from the institute for Supply Management (ISM) on Friday also Show scale of Contracting work in the factory for a second straight, despite the “overwhelming majority” of Companies indicated they were hiring.
deceleration in Manufacturing follows on the heel of moderate consumer spending growth in May as well as weak dwellings, building Factory production permits, which left Some economists expect that economy contractor again in The second quarter After the decline in GDP in The first Three months of The year.
“Investment spending is starting to weaken, and it’s just adds To proof that the United States economy “It’s slowing down fast,” said Shannon Serry, an economist at Wells Fargo. in New York.
ISM Scan Index of national Factory activity decreased to 53.0 last month, the lowest reading since June 2020, when the sector was rebounding from the COVID-19 downturn. that followed the reading of 56.1 in mayo. A reading above 50 indicates expansion in Manufacturing, which accounts for 11.8% of United State economy.
Economists polled by Reuters had expected the index to fall to 54.9. some of moderation in Factory activity reflects a transformation in spending back On the services of merchandise.
everybody of The six largest manufacturing industries – computer Electronic products, machinery and transportation equipment, petroleum and coal products, food and chemical products – are registered as moderate to strong growth.
Fed last raise her month policy rate three quarters of percentage point, the largest increase since 1994, to suppress high inflation. other similar size rate expected height in July. Central United States bank Standard interest increased overnight rate by 150 basis points since march.
ISM scan forward-seek new The orders sub-index fell to 49.2 from the reading of 55.1 in mayo. that was first decline in Indicator below Level 50 since May 2020.
US stocks were trading minimum. The dollar Has risen against Basket of currencies. US Treasury bond prices were higher.
Softening commands
slow orders growth It has been a recurring topic among most companies, with Only a few, including transportation equipment Manufacturers and electrical equipmentmakers of hardware and components, saying demand The ISM survey showed a strong shadow.
Food producers reported thatbusiness Slower than expected in volume, “although they were”already Receiving large orders for The autumn. ‘Machine producers said’ our suppliers are seeing softening of Request #%s.”
However, manufacturers have a lot of work on Hands to keep factories humming. Delay orders continued to pile up steadily pace in Jun.
anyway business Inventories have been sharply revised higher in The first quarter pioneer retailers like Walmart and Target both reported carrying a lot of merchandise, and the ISM survey still viewed customers’ stocks as “extremely low.”
makers of apparelleather and related products acknowledged the excess stock held by their customers and said they “expect orders decline in Coming months until stocks are properly settled against demand. “
Some economists realize the strong stock build last quarter K sign That supply chain bottlenecks were receding.
In fact, the ISM survey meter of Supplier deliveries fell to 57.3 from 65.7 in mayo. A reading above 50% indicates slower factory deliveries.
“This relief in Supplier delivery index can be related to the reduction in Supply chain issues but also double in said Daniel Silver, chief economist at JP Morgan in New York.
News on Inflation was encouraging. Scale of The prices that manufacturers pay to read have fallen of 78.5 out of 82.2 in mayo, supporting The view Inflation may have peaked.
Mix of waning demand It is likely that a shortage of workers will result in in Scan measurement of Factory labor declining In addition to reading of 47.3 out of 49.6 in mayo. technology companies like Tesla has been placed off Workers.
With 11.4 million vacancies around economy .in the end of April, economists warn against Continuous weakness reading in Work in the factory as a sign That the total salaries growth He was faltering.
“Purchasing managers say they are cutting employees, but layoffs they do not hit Christopher Robke, chief economist at FWDBONDS, said the weekly unemployment benefits data so far in New York. ‘The employment indicator was below 50 last A month as well and even non-farm payrolls in May for manufacturing gold up 18000″ added.