The best economy in history, lol.
U.S. Factory Gauge Unexpectedly Falls to Lowest Since 2009 By
Reade Pickert
January 3, 2020, 10:00 AM EST Updated on January 3, 2020, 10:53 AM EST
- ISM index signals contraction for a fifth consecutive month
- Economists projected gauge to rise to 49 in December
U.S. manufacturing closed out a tumultuous year with the weakest monthly performance since the end of the recession, with orders shrinking and factories continuing to dial back production.
Stocks and Treasury yields, already lower after a U.S. airstrike killed one of Iran’s most powerful military leaders, extended declines after the report.
The Institute for Supply Management’s purchasing managers’ index fell to 47.2 in December from 48.1, the fifth straight month of contraction and missing estimates for a rise in a Bloomberg survey of economists, according to a report Friday. It was the worst reading since June 2009 and marked the eighth decline in the last nine months. Readings below 50 indicate activity is shrinking.
The deterioration was driven by the weakest gauges of new orders and production since April 2009. The data show American factories remain plagued by pullbacks in business investment at home, softer demand throughout the world and, until recently, an escalating trade war between the U.S. and China.
“Trade issues remain an issue for supply managers,” Timothy Fiore, chair of the ISM’s manufacturing survey committee, said on a call with reporters. “I think that unplanned factory closures and extended holiday periods had a part to play on the production side and likely the employment side.”
Fifteen of the 18 manufacturing industries reported contraction in December, led by apparel and wood products.
continues at bloomberg.com
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