ISM Data Reflects What We Have Been Saying : Things Suck With The US Economy
The ISM numbers came in for manufacturing and it is bad. What is most concerning is the new orders, which were down again. Obviously, this has impact upon how companies operate proceeding forward.
In this video we discuss how the numbers are starting to reflect what we talked about months ago. When looking at leading indicators, we see the true path revealed.
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BEERKING.it is difficult for new orders to come in since they first have to sell the merchandise that is in stock, now they agree with what they have been commenting on for some time in some of their other publications
I say everyone needs to learn 3D printing and how to use other types of CNC machines, lol. Decentralized manufacturing! LOL. There are plans for the farm, lol. But doesn't help with cars... Although I do plan on trying to mess with some bio fuels, lol so I can use my old cars and produce my own gas, lol.
Don't know what else to do, lol. Kind of is what it is at this point. Just hold on to our butts.
The numbers aren't great but I don't really consider this good news. I guess it could be if you compare it to the next report's numbers though. However, the economy will still be bad regardless.
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Summary:
In this video, Task discusses the latest ISM manufacturing numbers in the United States, highlighting a decline in PMI, manufacturing prices, and new orders. He emphasizes how these figures are crucial indicators of economic health, especially in the manufacturing sector. Task connects the dots between new orders, inventory levels, and future sales, suggesting a potential downturn in the economy. He also delves into the impact on the automotive industry, with insights on inventory management and pricing strategies. Task warns of potential layoffs looming on the horizon based on these economic indicators.
Detailed Article:
The video opens with Task addressing the concerning state of the manufacturing industry in the United States, focusing on the ISM manufacturing numbers as a pivotal metric to evaluate this sector's health. He highlights the significant indicators from the latest report, such as the PMI dropping to 52.8 from 53, reflecting a slowdown in manufacturing activity. Task delves into the implications of this decline, especially for those tracking inflation, as manufacturing prices have decreased substantially as well.
Task elaborates on the new orders metric, pointing out that a reading below 50 signifies contraction. With new orders at 48, he underlines the potential impact on companies and their future sales, indicating a downward trend in business activity. Moreover, Task touches on employment figures, noting a modest increase but still remaining below 50, indicating a fragile job market within the manufacturing sector.
Moving beyond the ISM numbers, Task shifts the discussion towards construction spending, noting a decline of 1.1% in June. He speculates on the implications for the following month and how it aligns with the broader economic outlook. Task then addresses the looming shadow of a recession, referring to the two consecutive quarters of negative GDP growth and the denial from the White House, suggesting a challenging economic landscape regardless of official stances.
Furthermore, Task explores the interconnected nature of retail, wholesale, and manufacturing sectors, emphasizing the cascading effect of inventory levels on future production and sales. He speculates on the potential for layoffs and stresses the importance of monitoring inventory and new order trends as leading indicators of economic performance.
The video concludes with Task providing insights into the automotive industry, specifically highlighting inventory management strategies that have kept dealership prices high despite falling sales. He advises caution to potential car buyers to wait for a more favorable market condition, hinting at deliberate manufacturing reductions to maintain pricing and dealer margins.
In essence, Task's analysis of the ISM manufacturing numbers provides a comprehensive overview of the current economic challenges facing the United States. By dissecting various key indicators and their implications for different sectors, Task paints a picture of an economy on shaky ground, with potential ramifications for businesses and employment in the near future. His cautionary tone and focus on the intricate economic relationships offer viewers a deeper understanding of the broader economic landscape and potential future scenarios.