U.S. Manufacturing At Slowest Pace Since 2010, Fewer Jobs Added

U.S. manufacturing jobs

By Steven C. Johnson


NEW YORK, July 24 -- U.S. manufacturing this month expanded at its slowest pace since late 2010, hobbled by weak overseas demand for American goods, though a rise in domestic orders helped cushion the blow.

Financial information firm Markit said on Tuesday its U.S. "flash" manufacturing Purchasing Managers Index for July fell to 51.8 from 52.5 in June. July marked the fourth consecutive month of slower growth and the sector's weakest showing since December 2010. The index remained above 50, indicating factory activity continued to expand, only less rapidly.

New orders for exports fell outright for the second straight month, the first back-to-back decline in nearly three years, Markit said, as recession in Europe dented demand.

"The U.S. manufacturing sector is clearly struggling under the pressure from falling exports," said Chris Williamson, chief economist at Markit. "Reassuringly, domestic demand appears to be showing ongoing signs of resilience, encouraging firms to take on more staff."

When including domestic demand, new orders grew, though the reading of 51.9 showed the pace of growth slowed. June's tally was 53.7. The employment index rose to 52.9 in July from 52.8.

Even so, economists worry that the broader U.S. economy, which grew at a 1.9 percent rate in the first quarter, has since lost momentum. A poll of 74 economists polled by Reuters expects April-to-June growth to have slowed to 1.5 percent.

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Last year, manufacturing had been something of a bright spot in an atmosphere of otherwise sluggish growth, but it too has showed signs of slowing over the last few months.

The U.S. Labor Department said employers added fewer than 100,000 new jobs in June for the third consecutive month.

Williamson said there are more clouds on the horizon.

"Overall, the third quarter is so far shaping up to be worse than the second quarter in terms of growth, which is a growing concern for policymakers," he said.

Wall Street is bracing for another round of monetary easing from the Federal Reserve before the year ends. The median forecast in a July poll of 16 primary dealers showed a 70 percent chance of more action.

The "flash," or preliminary reading, is based on replies from about 85 percent of the U.S. manufacturers surveyed. Markit's final reading will be released on the first business day of the following month.


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danielisticall

OUTSOURSING IS GOOD FOR AMERICA,,,George W Bush ,, in a campaign speech against John Kerry 2003
So how did the middle class become second class citizens -- or, as Smith puts it, "Debt Serfs"? Not surprisingly, the answer is complicated, involving factors like the rising cost of education, the loss of pension funds and affordable health care, falling middle class wages, and the skyrocketing price of housing. Yet one clear answer lies in manufacturing. When looking at the declining American middle class, a good number to start with is 42,400.__________________ That's the total number of factories that the U.S. lost between 2001 and the end of 2009. Put another way, this translates into the outsourcing of 32% of all manufacturing jobs in America. ______

July 25 2012 at 5:50 AM Report abuse rate up rate down Reply
drmaxchartrand

The jobs are not coming back until Obama and his econmic and regulatory policies are long gone!

July 25 2012 at 4:35 AM Report abuse +2 rate up rate down Reply
ironmikemiata

Once apon a time,I worked in the mechanical trades,Now I'm RETIRED,don't forget to ask the recient college graduate (Who can't pay his college loan)to fix your air conditioner,stove or car

July 25 2012 at 2:29 AM Report abuse +2 rate up rate down Reply
zapdog4

Has anyone told those in the White House about this? According to what THEY report, things are good....

July 25 2012 at 1:25 AM Report abuse +3 rate up rate down Reply
1 reply to zapdog4's comment
drmaxchartrand

Sad but true. The jobs aren't coming back to the US until Obama is long gone and we have Romney as President.

July 25 2012 at 4:36 AM Report abuse +2 rate up rate down Reply
Bob

Jackie, I couldn't agree more with your comments. The USA should play like Europe and take the month of August off, not much real work happening anyway, and get together to plan how to tie a knot in Congress' purse strings.

July 25 2012 at 1:09 AM Report abuse +2 rate up rate down Reply
Jackie

I posted this on another article and post it again here. “I am so sick of the "repubs did this" & "dems did that"! When are you people going to learn? Both parties have screwed up in major ways throughout our history. Both parties should be wiped from history. The vote should go back to the people NOT DELEGATES, votes should be based on an individuals proven skills and conduct, companies should not be allowed to donate to officials (removing any room for sway by means of money), salaries for politians should be minimal with benefits getting cut off the day they are voted out of office with no pension given without the minimum 30 years held in office (not one term), and the people should have the say when it comes to when, where, and how their tax dollars are used. The only way to get politicians and government to do right by the people is to put them in the peoples shoes with the risk of losing everything just like the citizens they are 'voted in by.'”

July 25 2012 at 12:38 AM Report abuse rate up rate down Reply
Keith

Two massive and lopsided free trade agreements with India and China has US jobs being outsourced much more and faster than Bain Capital ever could.

Let's not forget where most of that 2009 "shovel ready jobs" stimulus went..... to creating jobs overseas to manufacture cr@p and sell it back here in the USA. auto parts, solar panels, clothing, electronics....

We can't even drill our own oil; this administration keeps us relying on middle east oil and blocks domestic drilling whenever it can. Off shore drilling pushed so far out that BS like the bP spill prevented human beings from going that deep to fix what should never have been passed by this administration to begin with.

July 25 2012 at 12:03 AM Report abuse +1 rate up rate down Reply
lancewarren67

think american voter-you made a huge,huge mistake in 08 by electing this obama.we are in deep,deep (you know what) hell.we can correct this mistake come nov.elect romney.however,alot of you will vote for this ass hole obama.when is enough -enough?we need work and jobs and better times

July 24 2012 at 11:41 PM Report abuse +1 rate up rate down Reply
lancewarren67

wake up america! this is what obama calls "the new america" .everyone in america is out of work,can't find a job or any job,on gov assistance,welfare,food stamps.etc.obama wants the federal gov to take care of you and he obama is the dictatior.obama will rule over us all telling us what is good for us, and we are his slaves. if you want a dictatior in white house(reelect him) but if you are tired of his lies,and not haveing a job to support yourself and family your family and you want to save america-we need to fire this dictatior commie in nov.let him drop into the unemployment and join us.let him try to "live"on a very small amt of money to pay bills etc. like we do.how long must we suffer under this ass hole obama?nov is not only election day but also our freedom from obama's opression of us all. fire obama in nov election.

July 24 2012 at 10:59 PM Report abuse +3 rate up rate down Reply
donpantanella

I swear, if we get any more bad news I might not vote for Obama.

July 24 2012 at 10:48 PM Report abuse +4 rate up rate down Reply

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