Thanks Obama! June Purchasing Manufacturers Index contracts for first time since July 2009
Obama may call the economy ‘an economy built to last’ as one of his dumb campaign slogans, but it mores like an economy teetering on recession. The June Purchasing Manufacturers Index contracted for first time in three years, plunging from 53.5 in May to 49.7 in June. Any reading below 50 is considered ”unhealthy.” As usual, the media will report this reading as “unexpected” as forecasters had expected a reading of 52.2.
The Institute for Supply Management reported Monday that its monthly index fell to 49.7 in June from a 53.5 reading in May. Any reading below 50 indicates contraction in the sector.
The report is a worrying sign for the economy. Manufacturing had been something of a bright spot during the recovery, and the sector had expanded for 34 months in a row before June.
The index came in below the expectations of economists surveyed by Briefing.com, who forecast it would fall to 52.2.