The August ISM manufacturer numbers were just what the Fed needed to avoid having to hike rates. Look at these numbers, they’re deliciously abysmal.
10:00 | ECONX
August ISM Manufacturing 49.4 vs 52.2 Briefing.com consensus; July 52.6
10:00 | ECONX
July Construction Spending M/M 0.0% vs +0.6% Briefing.com consensus
Construction numbers were off big too. What ever will we do?
Via Briefing.com
The key takeaway from the report is that it plants a negative seed for third quarter GDP growth prospects and also supports the notion held by many market participants that the Federal Reserve should refrain from raising the fed funds rate at this month’s FOMC meeting.
The August reading is the first reading below 50.0 since February 2016 and it was driven by a downturn in every component index, with the exception of new exports orders, which was unchanged at 52.5.
The key indexes of new orders (49.1 from 56.9), production (to 49.6 from 55.4), employment (to 48.3 from 49.4), and backlog of orders (to 45.5 from 48.0) were all below 50.0.
The Prices Index (to 53.0 from 55.0) remained above 50.0, but still reflected a deceleration in price increases versus July.
Of the 18 manufacturing industries covered by the report, only six reported an increase in new orders in August.
Isn’t convenient for these numbers to present themselves to us now? Ever since these shit throwing numbers came out, markets have firmed, even oil. I suppose, a really crappy economy equals more market rigging. Why not? Seems like moar fun.
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