All economic data is pointing to a slower 2019. One of those bits of data is from the manufacturing industry. United States manufacturing growth has hit a 9 year low this month, which is a terrible sign for our volatile economy.
Faced with decreasing demand from customers and a flareup in U.S.-China trade war and tariff tensions, American businesses grew in May at the slowest pace since before President Trump was elected, a pair of new surveys show. An IHS Markit “flash” survey of U.S. manufacturers fell to a nine-and-a-half-year low of 50.6 this month from 52.6 in April. Manufacturing conditions have been soft for months.
Even more ominous, was the firm’s survey of U.S. service-oriented companies such as banks and retailers. These slipped to a 39-month low of 50.8 from 52.7. Any number over 50 represents “growth” according to Market Watch. Service companies employ about four-fifths of all U.S. workers and until very recently they’ve been expanding rapidly if you listen to the mainstream media. Retail apocalypse, anyone?
But these could drop dramatically in the next 6 months or so if the trade war rages on and tariffs continue to plague the wallets of consumers. The growth in new orders from both domestic customers and foreign buyers declined and firms have now “put the brakes on hiring,” IHS said.
“Growth of business activity slowed sharply in May as trade war worries and increased uncertainty dealt a further blow to order book growth and business confidence,” said Chris Williamson, a chief business economist at IHS Markit. “The slowdown has been led by manufacturing, but shows increasing signs of spreading to services.”
All of this is happening at a time when the labor market is still going strong and households are spending at a rapid rate. American households are also now in a record amount of debt thanks to their spending habits, and interest rates are falling after the Federal Reserve relaxed its stance. “We don’t think it’s a genuine sign that the economy is suddenly plunging into recession,” Williamson added.
But the signs that the economy is on edge are all there and impossible to miss. Does that mean we’ll have a recession this year? Probably not, but it does look like the end of 2019 will be a much slower economy than the beginning. The trade war and 25% tariffs may have pushed the recession a little closer, but market analysts and other economists still say that we have time, and to not expect the recession before spring of 2020.
Bub,bub, bub, but., Trumpy says Happy Days are here again…..Am I right?
I think the real problem is wages V cost of living.
I’m on a fixed income so I count every penny and I know where they go. Due to government and purely due to government, prices increase, but my income doesn’t . I try to use the underground economy wherever possible and buy nothing new. I’m sure I’m not the only guy doing this.
When all us Baby Boomers quit buying stuff, the Millennials with “studies” degrees can’t create anything useful, and Democrats are getting everything for “free” shiite is going to happen.
Of course it’s at a low… I haven’t built anything this month lol.
Well, G. you need to get back to work…at least buy some stuff to help out the economy…maybe blow sumpin’ up? 🙂
OK OK, I bought 2 4×4’s and 2 2×4’s to make my adjustable truck bed rack that rides on the top of the bed to carry my boat, plywood, solar panels, pipe, lumber, etc. If I was young and ambitious I could make an aluminum one and patent it and make big bux. It is portable, takes little room, fits any truck bed, It would sell like crazy. If I had 5 bux for every good idea I had I would be rich lol.
People say I’m no good and crazy as a loon
‘Cause I get coffee in the morning
And get drunk in the afternoon
Kinda like my old Aussie shepard
I like to lay around in the shade
And I ain’t got much money but I damn sure got it made
‘Cause I ain’t asking nobody for nothin’
If I cant get it on my own
If you don’t like the way I’m livin’
You just leave this short-haired country boy alone
Preacher man talking on T.V.
Puttin’ down the rock and roll
Wants me to send a donation
‘Cause he’s worried about my soul
He said Jesus walked on the water
And I know that it’s true
But sometimes I think that preacherman
Would like to do a little walking too
But I ain’t asking nobody for nothin’
If I cant get it on my own
If you don’t like the way I’m livin’
You just leave this short-haired country boy alone
A poor girl wants to marry
And a rich girl wants to flirt
A rich man goes to college
And a poor man goes to work
A drunkard wants another drink of wine
And a politician wants a vote
I don’t want much of nothin’ at all
But I will take another drink
But I ain’t asking nobody for nothin’
If I can’t get it on my own
If you don’t like the way I’m livin’
You just leave this short-haired country boy alone
Songwriters: Charles Edward Daniels
I’m a freight guy and I can tell you I haven’t seen an raw material for manufacturing in 5 years. Haven’t seen any pipe strip metal plastic sheet and bar. What I have seen is hand tools like shovels by the tons. Enuf for every man woman and child to have 2. 53ft trailers full of shovels. A lot of high end camping gear and kayaks. Pallets of protein bars. Parts for the military. Seems like we are turning to a shtf economy. You can tell a lot about what’s going by the stuf people ship. america is in trouble.
You idiots I work in manufacturing. There is more work then you can shake a stick at. And that is nation wide. First off do not believe a thing that Mac puts out and second get off your Moms couch in the basement and look for a job. Trump has done more for manufacturing jobs then any President since Reagan. And for gods sake s learn a damn skill and you will have nothing but work. Then Mac will say high paid manufacturing workers wasting their wages on beer and loose women. SMH
Except you’re completely wrong. My husband works for a major auto manufacturer. They’ve been cutting shifts and reigning in output. As have all of their suppliers… and their suppliers. Even a friend’s husband who is a lineworker in a toilet paper factory has seen cutbacks at work (less outputting). Some industries are doing fine, but your belief that they all are is just plain old head in the sand mentality.
Fewww! Thank goodness you’re here LR cause by now we’d be all running amuck without your knowledge and be eating dirt. Hope you hang around so we all someone to look up to.
He must manufacture pot lol. Big market for that 🙂
LR, and as for you.. beer sales make Umerika strong boy! Now git on out thar and read sum buks!
Lane,
Manufacturing what?
I know there is a lot of work out there.
Enlighten us, so some of the younger
guys can get a job.
Growing weed relik lol.
Oh hey, I bought 4 C clamps an ammo box, paint brushes, battery cleaner, beer, jerkey, and took my doggie to the doggie wash. I’m helping!
I’m pretty sure Reagan’s term was the beginning of the decline of US manufacturing, the beginning of outsoursing, and the rise of China. I liked Reagan. But there was NO rise in domestic manufacturing. That is just revisionist history.
Well lets see……..the big companies instead of hiring and putting workers to work in the US manufacturing quality goods to sell here vs buying crap from china didn’t pan out so well for the American worker and consumer. Seems the major companies offshored the work to cheaper labor and pocketed the proceeds. I know this for a solid FACT! No company names mentioned of course for a reason.
Okay ding dongs I started out as a machinist worked a couple of other jobs along the way but ended up in quality control doing dimensional inspection of manufactured ie machined and molded parts. The vast majority made in America. Now I wright programs for CMM machines to dimensionally inspect said parts for a third party inspection house. We service manufacturers around the country and sometimes around the world. I also teach programming to new inspectors. Most manufacturers would pay a fortune to a good inspector or machinist or welder etc,etc. If all you are able to do is put a square peg into a square hole the is nothing anyone can do to help you. Maybe move to China i hear they pay big for that. But if you want precision machining done it is done in America. States that can use talented people Texas, Georgia, California (if you want to punish yourself) New Mexico, Maryland,Pennsylvania, Minnesota, Wisconsin. The list goes on and on. So get off your ass and do something and quit Bitcoin!!!
Hey I started out as a machinist. Did that for a couple a years. Now 35 years later I am an inspector in a quality laboratory. Which does third party inspection for manufacturers around the nation. And sometimes around the world. I wright programs for CMM machines to dimensionally inspect machined and molded parts I have also been around the country teaching people CMM programming and inspection. My son got out of the marines and did not want to go to collage so he apprenticed at my employer for 3 years now his ticket is punched. He is making a good living as a quality engineer.
There are manufacturers all around the country that need talented people and they pay really good in most cases. States like Texas, Georgia, New Mexico,Minnesota, Wisconsin, Maryland, Ohio, Arkansas, Pennsylvania, Maine I could go on and on. I know this because I have worked with company’s from all of these states and been to train inspector s in many of them also. I have also had people travel from Canada and Mexico to attend my class. And guess what I never went to college. I went to a vocational technical school for 2 years to be a machinist.
Learn a trade. Get good at it and you will never be out of work. And all kinds of products are made in the U.S. so do not tell me that nothing is made in the US.
I have tried twice to respond here but it seem my responses will not post.
But after reading what some of you have said I can see there is no point. I quit this web site once before. Now will once again. So you all go back to smoking dope eating Cheetos.
Well thanks for answering the question on yer way out dummfook!
Rustad;
You are not alone,believe me..
This site lost its roots back in the summer of 2016 and has never been the same.
Politics and Fear Porn infested the site and took over.Actual prepping and bushcrafting articles are seldom seen here anymore,but there’s never a shortage of Political and Fear Porn articles..The Political articles brought never before seen Trolls out of the woodwork who are ONLY here for the political articles..The usual Fanboys are constantly puffing their chests and bragging on themselves, and are quick to ridicule others.The entire walls of quasi intellectual nonsense hasn’t helped matters either..All of the above and more I’ve not mentioned,have contributed to a LOT of good,knowledgeable,veteran posters to flee the site.