U.S. Manufacturing Contracted at End of 2022, ISM Survey Says
Manufacturing is rolling over but this probably will not help much on the inflation front.

Manufacturing is rolling over but this probably will not help much on the inflation front.
S&P Global’s survey indicates a second consecutive month of contraction.
The manufacturing sector appears to be rolling over after several months of Fed hikes, global economic weakness, and U.S. consumers shifting spending to services.
“Weak economic outlooks are dragging on demand. The indicator last fell below 40 in the initial pandemic shock of 2020,” the Chicago ISM said.
Heavy industry experts have warned the European Commission that the EU faces the danger of “permanent deindustrialisation” should Brussels not act now to save the sector.
Up to 60 per cent of factories in the UK are now facing possible closure over a massive surge in their energy bills, a manufacturers’ body in the country has now claimed.
Dueling surveys paint different pictures of demand and production.
China’s summertime energy crisis intensified on Wednesday with news that factories in Sichuan province have been ordered to halt production for at least six days.
A big boost from automakers and fossil fuel production.
Outside of military spending, new orders rose by less than inflation, indicating a real contraction.
New orders and employment measures fell into contraction in June.
The latest signal of looming stagflation.
The New York Fed’s barometer of manufacturing sector activity in New York produced a negative reading for the second month in a row.
April’s orders for longer-lasting manufactured goods were below expectations. This may foreshadow an even deeper slowdown for U.S. factories that appears underway in May.
Toyota Motor Corp. will suspend the operation of 14 production lines across eight factories in Japan for nearly one week later this month as part of the Japanese automaker’s effort to cope with a microchip shortage caused by a month-plus Chinese coronavirus lockdown of Shanghai, China, Kyodo News reported Wednesday.
Shanghai on Saturday issued an edict allowing local factories to resume production — which had been halted in recent days due to a city-wide Chinese coronavirus lockdown — as long as “workers live on-site,” China’s state-run Global Times reported on Sunday.
Cold weather boosted utilities output in January as demand for home heating climbed.
Inflationary pressures show no signs of letting up, raising the odds that the Federal Reserve may ratchet up interest rates even faster than anticipated. The Department of Labor’s Producer Price Index showed that prices rose one percent in January, twice
Inflation masked an even larger contraction in manufacturing at year-end.
Inflation, omicron-linked absenteeism, and weaker demand all hurt growth in the first month of 2022.
Supply constraints just got even worse, suggesting more inflation ahead.
Supply chain constraints continue to weigh on manufacturing, the latest ISM PMI survey shows.
White House economists told America inflation would fade in the later months of 2021. Instead, prices are surging again.
Manufacturing and capacity utilization too unexpected downturns in September.
Orders for durable goods rose by less than prices of durable goods in August, suggesting there may have been an output contraction as supply-chain disruptions still stymie growth.
Texas manufacturing activity unexpectedly slowed significantly in August, data from the Federal Reserve Bank of Dallas showed Monday. The production index of the Dallas Fed’s Texas Manufacturing Outlook Survey plummeted to 20.8 in August from 31.0 in July. The index
Shortgages of chips dragged down production and capacity utilization in June, pointing to more pricing pressure in the months to come
Manufacturing output rose just 0.4 percent in April, compared with expectations for a 1.8 percent gain, the Federal Reserve said Friday.
U.S. factory orders rose 1.1 percent in March, the Commerce Department said Tuesday. That was below the 1.3 percent increase expected by analysts but above the 0.8 percent contraction amid February’s harsh weather.
Worker shortages, chip shortages, and rising materials costs may be holding back expansion in U.S. factories.
The reopening triggered a surge in factory activity in Texas but high unemployment benefits are making workers scarce.
The Kansas City Fed’s manufacturing survey’s composite index jumped to 31, up from an already elevated 26 in March. That is the best reading in the survey’s history.
Manufacturing activity exploded higher in March, fueled by strong growth in new orders, the clearest sign that the economy was ready to boom prior to the stimulus package passed last month and may now be at risk of overheating.
The economy is accelerating more rapidly than expected.
The Philly Fed’s manufacturing activity index soared to 51.8 in March from 23.1 in the prior month. That’s the best reading since 1973.
U.S. factory orders rose by a sizzling 2.6 percent in January to $509.4 billion, data released by the Commerce Department Thursday showed.
The ISM Manufacturing Report on Business PMI stood at 60.8 in February, up from 58.7 in January. That’s the highest level since August 2018 and indicates a powerful expansion for the manufacturing sector.
Orders for durable goods rose 3.4 percent in January compared with December. The prior month was also revised up to show a 1.2 percent gain from November.
U.S. industrial production rose 0.9 percent in January, data from the Federal Reserve showed Wednesday. Manufacturing output rose by one percent, twice the forecast, despite a decline in auto production.
Orders for consumer goods were particularly strong as 2020 came to a close.