The manufacturing sector is declining at a near record place. As Mark Thoma points out, this occurred prior to the meltdown; what could be next is truly scary. The Wall Street Journal’s Real Time Economics Blog reports:
For months and months, the widest-followed index of manufacturing activity, produced by the Institute for Supply Management, has wavered within a narrow range, showing essentially slight growth in the sector as other industries tanked. Then, along came September. The ISM manufacturing report released this morning showed a stunning decline in several key components as the overall index last month dropped by more than six points to 43.5, its lowest reading since October 2001. … New orders plunged by nearly ten points, the employment index sank by about eight points, and production overall dropped by a whopping 11 points last month, as all measures receded deeper into contraction. Export orders, a source of strength for the sector over the past year, dropped by five points. Inventory gauges also tanked, a sign that manufacturers are paring back… even though the enormously important holiday shopping season is fast approaching.
What do you think the geographic impacts of this will be?
October 2nd, 2008 at 7:40 am
Looks like the Midwest is about to get pounded even harder.
October 2nd, 2008 at 10:38 am
I agree. The Midwest and Southern regions of our country are going to get hurt badly.
October 2nd, 2008 at 12:27 pm
Perhaps you found the proverbial intersection of Wall and Main?
October 2nd, 2008 at 8:00 pm
[...] says, “Canada isn’t the U.S.,” but that doens’t mean we’re immune to manufacturing declines, which are a very real and immanent threat to our economy, nor a housing bust, which the [...]