{"id":1795756,"date":"2023-01-05T09:21:29","date_gmt":"2023-01-05T14:21:29","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1795756"},"modified":"2023-01-05T09:22:22","modified_gmt":"2023-01-05T14:22:22","slug":"u-s-manufacturing-falls-deeper-into-recession-factory-data-show","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-manufacturing-falls-deeper-into-recession-factory-data-show\/","title":{"rendered":"Recession Deepens in the United States Manufacturing Sector, Factory Data Show"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fu-s-manufacturing-falls-deeper-into-recession-factory-data-show%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1795756&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>According to the most recent factory data, American manufacturing fell further into recession last month.<\/p>\n<p>December saw manufacturing slow down to its slowest pace in over a decade since the outbreak of the pandemic. <a href=\"https:\/\/www.theepochtimes.com\/t-demand\">demand<\/a> remained low and production began to weakened, according to data from\u00a0the <a href=\"https:\/\/www.ismworld.org\/supply-management-news-and-reports\/reports\/ism-report-on-business\/pmi\/december\/\">Manufacturing ISM Report On Business\u00ae<\/a> The <a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/fd49c3c51d79418b9622ad78993a762b\">S&#038;P Global U.S. Manufacturing PMI report.<\/a><\/p>\n<div class=\"paywall\">\n<p>The S&#038;P\u2019s manufacturing index fell to 46.2 in December from 47.7 in November, for its lowest reading since May 2020, when most of the country was in lockdown and remains unchanged from the preliminary reading.<\/p>\n<p>Meanwhile, ISM\u2019s report saw factory activity drop from 49.0 in November to\u00a048.4 last month.\u00a0A reading below 50.0 is indicative of a contraction in this sector.<\/p>\n<p>Both indexes suggests that U.S. manufacturing activity declined in December for the second consecutive month,\u00a0after almost 30 months of growth.<\/p>\n<p>\u201cThe U.S. manufacturing sector again contracted, with the Manufacturing PMI\u00a0at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous seven months, the December composite index reading reflects companies\u2019 slowing their output,\u201d said\u00a0Timothy R. Fiore, chairman of ISM\u2019s Manufacturing Business Survey Committee.<\/p>\n<h2>With activity slowing, manufacturing prices start to fall<\/h2>\n<p>The only positive note regarding the contraction is that manufacturing prices may finally come down, with the ISM pricing index sliding down to\u00a039.4.\u00a0Prices fell faster than November when the ISM price index stood at 43.<\/p>\n<p>However, the ISM latest readings correlate with a 0.1% \u201cdecrease in real gross domestic product on an annualized basis,\u201d Fiore.<\/p>\n<p>The inflation-adjusted U.S. economy fell in the first half 2022 but recovered to a 3.2 percent annualized increase in the third quarter.<\/p>\n<\/div>\n<h2>December: Contraction in the Manufacturing Sector due to Client Demand<\/h2>\n<div class=\"paywall\">\n<p>According to the S&#038;P, American industrial activity contracted due to an acceleration in downturns of output and new orders. Companies attributed low client demand to rising economic uncertainty and high unemployment. <a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a>,.<\/p>\n<p>\u201cThe manufacturing sector posted a weak performance as 2022 was brought to a close,\u201d Sian Jones is a senior economist at S&#038;P Global Market.<\/p>\n<p>\u201cDemand for goods dwindled\u00a0as domestic orders and export sales dropped. Muted demand conditions also led to downward adjustments of stock holdings, as excess inventories built earlier in the year were depleted in lieu of further spending on inputs. With the exception of the initial pandemic period, stocks of purchases fell at the steepest rate since 2009,\u201d Jones.<\/p>\n<p>Firms that were more cautious about hiring this month due to concerns over the economy&#8217;s outlook are beginning to feel the effects of these worries, she said.<\/p>\n<p>Jones stated that the sector saw a slight increase in job growth over the past month, which was largely due to skilled hiring.<\/p>\n<p>According to the S&#038;P survey, the decline in activity towards the end of 2022 led to an improvement in price pressures and a moderated in output and factory input inflation.\u00a0This resulted in supply chain bottlenecks falling from earlier this year.<\/p>\n<p>The rate at which selling prices increased sharply was also slowing, but it did not slow down.<\/p>\n<p>\u201cSlower upticks in inflation signal the impact of Federal Reserve policy on prices, but growing uncertainty and tumbling demand suggest challenges for manufacturers will roll over into the new year,\u201d Jones stated.<\/p>\n<p>Many investors hope that the Fed will relax its aggressive approach to interest rates by taking advantage of the recent declines in manufacturing.<\/p>\n<p>The central bank\u2019s series of interest rate hikes are a prime factor behind the slowdown in the economy.<\/p>\n<\/div>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-bryan-jung\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/ttl7daySGw_WEB_BrianJung.jpg\" alt=\"Bryan Jung\"   style=\"display:none\"><\/a>\n\t\t\t\t\t<\/div>\n<p>Bryan S. Jung is a New York City resident and native. He has a background both in politics and in the legal sector. He graduated from Binghamton University.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to the most recent factory data, American manufacturing fell further into recession last month. December saw manufacturing slow down to its slowest pace in over a decade since the outbreak of the pandemic. demand remained low and production began to weakened, according to data from\u00a0the Manufacturing ISM Report On Business\u00ae The S&#038;P Global U.S. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1695376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[5458,6441,7051,13385,12169,10069,3819,12368,5087],"class_list":["post-1795756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bongino","tag-data","tag-deepens","tag-factory","tag-manufacturing","tag-recession","tag-report","tag-sector","tag-united"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1795756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1795756"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1795756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695376"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1795756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1795756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1795756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}