US Regional Manufacturing Weakens for 2nd Month Running
$DIA, $SPY, $QQQ, $VXX
Factory activity in New York slowed in early August for the 2nd month running, and manufacturers in the state cut jobs.
The Federal Reserve Bank of New York said Monday that its Empire State manufacturing index dropped to a reading of – 4.2, from +0.6 in July. Any reading above Zero points to expansion. This is a Big Miss.
New orders ticked up slightly and a measure of shipments rose to 9 from 0.7 in the prior month. Those figures suggest the broader index might pick up a bit in the months ahead.
US manufacturing has struggled for the past 1.5 years with a stronger USDs and weak overseas economies that have cut into their exports.
Ongoing automation has also made it possible for manufacturers to produce more with fewer workers. Nationwide, factories have shed 30,000 good paying jobs in the past year. Though you will not hear that in the media of from the Obama Admin.
In New York, a measure of employment improved slightly, rising to -1 from – 4.4 in July. The negative reading indicates factories are still laying off workers.
Nationwide, manufacturing output is rising modestly by some measures, but its expansion remains anemic.
The Institute for Supply Management (ISM) said earlier this month that its manufacturing index registered 52.6 in July, down from June, but still above 50, which points to expansion.
Yet its measure of employment contracted and has fallen in 7 of the past 8 months.
Monday, the US major stock market indexes finished at: DJIA +59.58 at 18636.05, NAS Comp +29.12 at 5262.01, S&P 500 +6.10 at 2190.15
Volume: Trade was light again, with 722.4-M/shares exchanged on the NYSE.
- Russell 2000: +8.1% YTD
- S&P 500 +7.1% YTD
- DJIA+6.9% YTD
- NAS Comp +5.1% YTD
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