Manufacturing Slowdown: What Does It Mean for the Economy?

Manufacturing Slowdown: What Does It Mean for the Economy?

In September 2019, the Institute for Supply Management (ISM) Purchasing Managers Index (PMI), which measures a wide variety of manufacturing data, fell to 47.8%, the lowest level since June 2009.1

A reading below 50% generally means that manufacturing activity is contracting. The August reading of 49.1% had signaled the beginning of a contraction, and the drop in September suggested that the contraction was not only continuing but accelerating. The index rose slightly to 48.3% in October, but this indicated the third consecutive month of contraction.2 Nearly two-thirds of economists in a Wall Street Journal poll conducted in early October said the manufacturing sector was already in recession, defined as two or more quarters of negative growth.3

 

We’d Love To Hear From You

Previous
Previous

Appropriate Checklists for Year-End Tax Planning

Next
Next

Introducing Zero Commissions for Trades—Delivering Even More Value from Fidelity