{"id":2190117,"date":"2024-03-01T11:44:02","date_gmt":"2024-03-01T16:44:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-manufacturing-sector-struggling-to-recover-ism\/"},"modified":"2024-03-01T11:47:46","modified_gmt":"2024-03-01T16:47:46","slug":"us-manufacturing-sector-struggling-to-recover-ism","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-manufacturing-sector-struggling-to-recover-ism\/","title":{"rendered":"US manufacturing sector still struggling to recover, according to ISM"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/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%2Fus-manufacturing-sector-struggling-to-recover-ism%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=2190117&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--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>March 1, 2024 \u2013 7:02 AM \u200bPST<\/strong><\/p>\n<p><strong>U.S.\u200d manufacturing continues to decline in February,\u200b with factory employment reaching a \u200bseven-month low due \u200bto a\u2063 decrease \u200din new orders.<\/strong><\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The Institute \u2063for Supply Management (ISM) reported that its manufacturing PMI dropped to 47.8\u200b in February, down \u2063from 49.1 in January. This \u200dmarks the\u2064 16th consecutive month that the PMI has remained below \u206350,\u2064 indicating a contraction in manufacturing.<\/p>\n<p>This is the longest stretch\u200d of contraction since August 2000 to\u2064 January \u20642002. Economists surveyed by Reuters had predicted a \u2062slight increase to 49.5. However, the ISM revised its guidance, stating that a PMI \u2062reading below 42.5 over time signifies an overall contraction in the economy, down from the previous threshold of\u2064 48.7.<\/p>\n<p>Despite this decline in\u2062 manufacturing, the overall economy is still growing, with a 3.2% annualized rate \u200cin the fourth quarter.<\/p>\n<p>While <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/this-economic-week-ahead\/\" title=\"This Economic Week Ahead\">higher borrowing costs<\/a> have affected demand\u2064 for goods and business investment in equipment, it is important \u200dto note that sentiment surveys, including the ISM survey, \u200dmay be painting a more negative\u200c picture of manufacturing than\u200b the actual data suggests. Manufacturing accounts for 10.3% of the economy.<\/p>\n<p>Market\u2063 expectations\u200c are that the Federal \u2064Reserve will\u2063 begin \u2062cutting interest rates sometime\u2063 this\u2063 year. Since March 2022, \u2063the\u2064 U.S. central bank has raised its\u200c policy rate by 525 basis points to the current range of 5.25%-5.50%.<\/p>\n<p>Official data from the government and Federal \u200dReserve indicate\u2064 that manufacturing has been relatively stable. Goods spending has shown fluctuations.<\/p>\n<p>The ISM\u2064 survey&#8217;s\u2064 new orders sub-index, which provides a forward-looking perspective, dropped to \u206449.2\u2064 in\u2062 February after rebounding\u200b to 52.5 in January.<\/p>\n<p>Factory production \u200bremained subdued,\u200c with the sub-index declining to 48.4 from 50.4 in January. There were slight indications \u2064of supply\u2064 chain constraints, likely due to \u200cweather-related disruptions. The survey&#8217;s measure of supplier deliveries rose \u2062to 50.1\u2062 from 49.1 \u200din the previous month, indicating slower \u2063deliveries.<\/p>\n<p>Inflation at\u200b the factory gate remained\u2064 moderate, with the\u2064 survey&#8217;s measure \u2063of prices paid by manufacturers slipping \u200cto\u2064 52.5 from 52.9 in January.<\/p>\n<p>Factory employment continued to shrink, with the survey&#8217;s measure of \u200dmanufacturing employment dropping to \u206445.9, the lowest reading since last July, down from 47.1 in January. However, it is worth noting\u200d that this measure has not been a \u200breliable predictor of manufacturing payrolls in\u200b the government&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-job-growth-misses-expectations-in-october-as-labor-market-slows\/\" title=\"US job growth falls short of expectations in October as labor market weakens.\">closely \u200bwatched employment report<\/a>. The employment \u2062report for February is scheduled to be published next Friday.<\/p>\n<p><sup>Reporting by Lucia Mutikani; Editing by Chizu Nomiyama<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t<strong>Share this \u2063post!<\/strong>\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Both Trump and President Biden visit the Texas Border,\u200c Hunter opens up about the Big Guy and Jerry Jones might\u200c own more than the Cowboys.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>In a highly crucial visit, President Biden\u2062 makes a rare trip to the \u2062southern border.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>with Carolyn Phippen<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>with \u200dBill Wells<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Elon \u200dMusk alleges a breach of contract and a departure\u200c from the original mission to develop\u200c AI for humanity&#8217;s benefit.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>The \u200bstock market&#8217;s \u2063interest in AI is on the rise, fueled by \u2063Nvidia&#8217;s stunning rally\u200c and potential impact on\u2064 various sectors.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>UnitedHealth\u200c Group faces a major data breach as hackers \u2064claim to \u200chave stolen millions \u200dof sensitive records.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Legal battle ensues as X challenges the\u2063 Center for Countering Digital Hate&#8217;s criticism of hate speech.<\/strong><\/p>\n<\/p><\/div>\n<p> \u200brnrn  <\/p>\n<h2> How do sentiment surveys, like the ISM survey, reflect\u2062 the state of \u2062the manufacturing sector and what are their limitations?<\/h2>\n<p><span>  Since \u200cAugust \u20642023.<\/p>\n<p>Overall, \u2062the decline in \u200cmanufacturing activity in February is concerning, as \u200bit indicates a slowdown in the sector.\u2062 The decrease in new orders\u200b and factory\u2062 employment, along with the drop \u200bin the manufacturing PMI, are all \u2063factors\u2064 contributing to this decline.<\/p>\n<p>However, it is\u2064 important to note that there are other indicators of\u200c the\u200d economy&#8217;s performance \u200dthat suggest \u2064a different outlook. The\u200b overall economy is still growing at a\u200d 3.2%\u2064 annualized \u200crate in the fourth quarter, which\u200b indicates that while manufacturing may be experiencing a contraction, other sectors are performing well.<\/p>\n<p>Additionally, sentiment surveys, including the ISM survey, may \u2063not\u2062 necessarily reflect the true state of the\u200d manufacturing sector. These surveys \u2062are based on\u200c opinions and\u200b perceptions of industry professionals, and there can be biases and limitations in their responses.<\/p>\n<p>It is also worth considering \u2063the impact\u200b of \u200cexternal factors on manufacturing, such as higher borrowing \u2063costs and supply chain\u2064 constraints. These factors can contribute to a decline in demand for goods \u2064and affect business\u200c investment in equipment.<\/p>\n<p>The\u200c Federal Reserve&#8217;s decision to potentially cut interest rates this year could have a\u2064 positive impact on manufacturing activity \u200cby reducing borrowing costs and stimulating demand. The central bank has raised \u200dits policy rate in recent \u200cyears, and \u2062a rate cut could provide relief for businesses and \u2064support growth in the sector.<\/p>\n<p>Official data from the government and Federal Reserve indicate that while there\u200b may be fluctuations in goods spending, manufacturing has been relatively stable. \u200cIt is important to take these \u2062data into \u200baccount\u200c when assessing the state of the\u200d sector.<\/p>\n<p>Looking ahead,\u2062 it will be important to closely monitor the performance \u2064of the manufacturing sector and its impact\u2064 on the overall economy. While the current decline in \u2063manufacturing activity \u200dis concerning, it is \u2063essential to consider\u2064 other indicators and factors that can provide a more comprehensive understanding \u2064of the sector&#8217;s performance.<\/p>\n<p>Addressing the \u200dchallenges faced\u200b by the manufacturing\u2064 sector, such as supply chain constraints and higher borrowing costs, will\u2063 be\u2063 crucial in supporting its recovery and ensuring its contribution to the \u2063economy.<\/p>\n<p><strong>Sources:<\/strong><\/p>\n<ul>\n<li>ISM &#8211; https:\/\/www.ismworld.org\/<\/li>\n<li>Reuters &#8211; https:\/\/www.reuters.com\/<\/li>\n<\/ul><\/div>\n<p><\/body><\/html><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In February, U.S. manufacturing continued to decline as factory employment hit a seven-month low and new orders decreased. The Institute for Supply Management reported that the manufacturing PMI dropped to 47.8, down from 49.1 in January<\/p>\n","protected":false},"author":1911,"featured_media":2190118,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ7U01F-BASEIMAGE.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2190117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ7U01F-BASEIMAGE.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2190117","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\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2190117"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2190117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2190118"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2190117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2190117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2190117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}