Who said manufacturing jobs are shrinking in the US?

Question

July ISM Manufacturing Report Comes in at 53.8%
Filed under: Economy, MSM Biz/Other Bias — TBlumer @ 10:27 am

The Institute for Supply Management’s reported 53.8% trailed expectations of 55.5% (link requires free registration).

That’s down from 56 last month, still in expansion mode (any reading above 50 indicates expansion), and slightly higher than the Bush 43 budget-responsibility average of 54.4 noted last month.

After a late-2006 and early-2007 hiccup, that’s six months in a row of expansion, and 48 out of the past 50. Also noted last month:

Only two other periods in the 60 years of the ISM Manufacturing Index have a (better) track record — August 1975 through July 1979 (48 straight months) and April 1961 through December 1966 (68 of 69 months, including a streak of 51). The Reagan-Bush years had a run of 42 expansions out of 43 months from October 1985 through April 1989, which included a streak of 33. A full history of the index is here.

Given relatively high gas prices, the soft homebuilding and home improvement industries, and the ongoing struggles at US-based automakers, it’s impressive that the index continues to stay positive. May it continue.

_____________________________________

UPDATE, August 2: So here’s how the Associated Press played it, in an unbylined report –

While the U.S. manufacturing sector grew for the sixth consecutive month in July, expansion was the slowest since March, a survey said Wednesday, indicating that the economy is plodding along at a tepid pace.

Earth to AP — Manufacturing is only 14% of “the economy.” AP would be advised to chill on its premature e-celebration until the other 86% gets reported on Friday in ISM’s Non-Manufacturing Report.

Answer 1

I do, but it's gonna come up these days.

Answer 2

the cost of oil can be used as an indicator of the amount of industrial output to some degree if you factor out the hurricanes and political unrest at any given period it's kinds tough to do, but you can get a pretty good feel for it if you read the news, check the stock market and oil price index, as well as regularly read the details regarding the leading economic statistics). Oil was dropping as of last week to about $70, that's down from about $80 just a little over a week ago. Right now it has been creeping up but that is certainly due to Hurricane Dean in the Gulf and the fact that the Fed dumped $20 billion into the economy (the latter might be considered to be an inflation factor to the speculators buying and selling commodities)

So....the ecomonic indicators of the housing industry has affected the sub-prime loaners...both have affected the buying by consumers....all three have affected the industrial output....any gains in the market in the near future will not be real. The gains will be mostly market manipulation by big money

Answer 3

Well number one, as a 14 year member of ISM and active on the affiliate boards of NAPM-TenneVa and NAPM-Tulsa, let me say thanks for making use of the ISM Manufacturing Index. That Index is one of the most accurate and oft quoted ones in this country. More people should take a look at it.

There's really no disputing the info, but like many things the statistics only tell part of the story. I just happen to be one of those folks who develops off-shore sourcing...so I know that things do get moved overseas as the need develops.

Off-shore sourcing is one of those things that allows US companies to compete. And fortunately as the Index continues to show, growth in the manufacturing sector has been maintained despite the continual movement of some manufacturing off-shore.

Let's hope that always remains the case.

Answer 4

this is a perfect example of why common sense is dead in america.

All you have to do is go to the store and try to find things that are made in USA or say product of USA. I dare you. Its not just clothes its not just cooking ware, or household items, its also food. I went to the grocery store yesterday to buy some packaged fish, and had the hardest time trying to find fish that was not "Product of China". Finally I had to settle for Fish from Honduras (figured it was safer).
I hear China will soon be sellling their cars here in the USA. They own our national debt..etc.

enough with the intellectual mumbo jumbo rationalizations and white flag waiving. Common sense and your gut should tell you this is not right...that something is very wrong and that its to the detriment of the american people.

ENOUGH ALREADY !

Answer 5

Sure and I'am the Pope
Bless you
Wait I just looked in my newspaper for jobs, there was about a thousand jobs and they were all for manufacturing and paying 15 dollars an hour to start.

Answer 6

I DO!!! Ever hear of the Rust Belt? EVERYTHING is getting outsourced by greedy corporate SOBs who can't see past the next quarterly report. Walk into any store: nine out of ten products you pick up will be CHEAP CRAP from China!

Answer 7

I would think that there will soon be a boom in America in toy manufacturing.

Answer 8

A lot of people have said it, but it looks like you really just wanted to preach, not ask a question, yes?

Answer 9

http://youtube.com/watch?v=8rC-GYduJeI