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US manufacturing is in a 'technical recession.' How worried should we be?


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I thought the trillion plus tax cuts for corporate America and the tariffs Trump promised would boost US manufacturers?

US manufacturing is in a 'technical recession.' How worried should we be?

If you are looking for signs of trouble in the U.S. economy, many experts (and politicians) point to manufacturing. The industry is facing the double whammy of President Trump’s trade war and declining purchases from abroad as Europe, China and other countries are slowing down. 

The red flags have been rising for the manufacturing section this year. Hiring has slowed sharply. Last year, the sector was averaging 22,000 new jobs a month, according to Labor Department data. This year it’s down to 8,000. And a popular gauge of manufacturing’s health — the PMI (Purchasing Managers’ Index) — has tumbled in recent months and now sits at near-recession levels. 

Big companies like Caterpillar, which makes construction equipment, and Fastenal, which is the largest fastener distributor in North America, have reported disappointing earnings in recent days. While the overall U.S. stock market has surged more than 20 percent so far this year, Caterpillar stock is up less than 4 percent. 

But the biggest warning sign arrived last week when the Federal Reserve reported that U.S. manufacturing was in a “technical recession” the first half of 2019. 

The widely held definition of a recession is when output shrinks for two consecutive quarters. According to the Fed’s U.S. industrial output data, that’s exactly what happened: Output fell for the January through March quarter and again in the April through June quarter. 

https://www.msn.com/en-us/money/markets/us-manufacturing-is-in-a-technical-recession-how-worried-should-we-be/ar-AAEQSZF?li=BBnbfcN
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11 minutes ago, Mainecat said:

I thought the trillion plus tax cuts for corporate America and the tariffs Trump promised would boost US manufacturers?

US manufacturing is in a 'technical recession.' How worried should we be?

If you are looking for signs of trouble in the U.S. economy, many experts (and politicians) point to manufacturing. The industry is facing the double whammy of President Trump’s trade war and declining purchases from abroad as Europe, China and other countries are slowing down. 

The red flags have been rising for the manufacturing section this year. Hiring has slowed sharply. Last year, the sector was averaging 22,000 new jobs a month, according to Labor Department data. This year it’s down to 8,000. And a popular gauge of manufacturing’s health — the PMI (Purchasing Managers’ Index) — has tumbled in recent months and now sits at near-recession levels. 

Big companies like Caterpillar, which makes construction equipment, and Fastenal, which is the largest fastener distributor in North America, have reported disappointing earnings in recent days. While the overall U.S. stock market has surged more than 20 percent so far this year, Caterpillar stock is up less than 4 percent. 

But the biggest warning sign arrived last week when the Federal Reserve reported that U.S. manufacturing was in a “technical recession” the first half of 2019. 

The widely held definition of a recession is when output shrinks for two consecutive quarters. According to the Fed’s U.S. industrial output data, that’s exactly what happened: Output fell for the January through March quarter and again in the April through June quarter. 

https://www.msn.com/en-us/money/markets/us-manufacturing-is-in-a-technical-recession-how-worried-should-we-be/ar-AAEQSZF?li=BBnbfcN

Aren’t you popping champagne with this news??

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1 minute ago, ArcticCrusher said:

:lol:

 

Shrinking revenue and earnings. Slowing domestic and global growth. Trade wars and massive deficits......and we get record highs daily. 

Makes perfect sense :lol:

Edited by f7ben
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18 minutes ago, f7ben said:

The market is a completely convoluted dichotomy at present. It makes virtually zero sense. 

Speculation is a killer Ben. The Trump economy has a paper asshole.

Edited by Mainecat
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There is literally nobody around that isn't making good bank right now...even increasing fees and prices and STILL busy as fuck.  If you aren't making money right now, you don't want to or, are just plain stupid/lazy/retarded or a socialist.  :lmao: 

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6 minutes ago, Carlos Danger said:

The company I work for only sold 2 units the whole time Obama was in office......this year we have sold 6. Last year we sold 2. I am talking units that are in the tens of millions range per.

Great news man I am happy for you really :bc:

 

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1 hour ago, Zambroski said:

There is literally nobody around that isn't making good bank right now...even increasing fees and prices and STILL busy as fuck.  If you aren't making money right now, you don't want to or, are just plain stupid/lazy/retarded or a socialist.  :lmao: 

Zam know like usual :bc:

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The problem is even though the UE rate is low, the out of the workforce rate is high.

Seriously think about it, if UE was 3.6% of all available workers production would be much higher, the GDP would be  higher. About 1/2 million workers were counted out of the workforce  ahead of Aprils job numbers.  I read where like 40% of workers between the ages of 20 and 54 are not working.

I'm not blaming Trump this was going on before he was elected but it has gotten worse since he was elected.  

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10 minutes ago, 1jkw said:

 

The problem is even though the UE rate is low, the out of the workforce rate is high.

Seriously think about it, if UE was 3.6% of all available workers production would be much higher, the GDP would be  higher. About 1/2 million workers were counted out of the workforce  ahead of Aprils job numbers.  I read where like 40% of workers between the ages of 20 and 54 are not working.

I'm not blaming Trump this was going on before he was elected but it has gotten worse since he was elected.  

Your right man it's a big issue :bc:

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