Manufacturing shrinks for the first time in nearly 3 years – US Economy Outlook Dim

WASHINGTON — U.S. manufacturing shrank in June for the first time in nearly three years, adding to signs that economic growth is weakening.

Production declined, and the number of new orders plunged, according to a monthly report released Monday by the Institute for Supply Management.

Is the U.S. economic recovery stalling?: The Labor Department reported June 1 that the nation’s economy added only 69,000 jobs in May, bringing the unemployment rate to 8.2 percent. Here, a look at the fallout from our troubled economy and the troubles of economies overseas.

The slowdown comes as U.S. employers have scaled back hiring, consumers have turned more cautious, Europe faces a recession and manufacturing has slowed in big countries like China.

This is not good,” said Dan Greenhaus, chief economic strategist at BTIG, an institutional brokerage. Though the report “does not mean recession for the broader economy, it is still a terribly weak number.”

Manufacturing will likely stay weak for the next few months. The ISM’s gauge of new orders, a measure of future activity, plunged from 60.1 to 47.8. That’s the first time it has fallen below 50 since April 2009, when the economy was still in recession.

Read More at Washington Post

Wayne Dupree

Wayne Dupree is owner and founder of WayneDupree.com. He was named to the 2017 Newsmax’s 50 Most Influential African-American Republicans. He served in the USAF between 1987-1995. He saw time in Operation Desert Storm/Shield and is the father of three. He is the host of the Wayne Dupree Show.

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