Manufacturing in U.S. Contracts at Faster Pace Than Economists Estimated

[marmar]

U.S. Factories Contracted at Faster Pace in September (Update2)

By Timothy R. Homan

Oct. 1 (Bloomberg) -- Manufacturing in the U.S. contracted in September at the fastest pace since the last recession as sales slowed, signaling the credit crisis is spreading beyond Wall Street.

The Institute for Supply Management's factory index dropped to 43.5, the lowest level since October 2001 and less than economists anticipated, the Tempe, Arizona-based group reported today. A reading of 50 is the dividing line between expansion and contraction.

The housing slump has already spread to autos, and other industries may soon follow, as mounting foreclosures, tougher lending rules and rising unemployment choke off consumer spending. While exports have so far kept manufacturing from slipping much more, weakening economies around the globe are also causing overseas sales to slow.

``Manufacturing could be on the brink of a collapse,'' said Lindsey Piegza, a market analyst at FTN Financial in New York. `There are no orders, no jobs and there is really no incentive for businesses to invest. The credit crisis is compounding the problem.''

Stocks added to losses after the report and Treasury securities extended gains. The Standard & Poor's 500 index fell 1.8 percent to 1,145.6 at 10:42 a.m. in New York.

The ISM index was projected to drop to 49.5 from August's 49.9, according to the median of 72 economists' forecasts in a Bloomberg News survey. Estimates ranged from 48 to 51.1. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aNZwtOgTCOh8&refer=home

[Ah Xoc Kin]

1. why do analysts not analyze the obvious?

according to this analyst
"Manufacturing could be on the brink of a collapse," said Lindsey Piegza, a market analyst at FTN Financial in New York.

--Yes, because sending their competitors to China or Mexico has nothing to do with anything.

[Cessna Invesco Palin]

8. I don't see a lot of people driving Chinese cars.

Not everything is made in China, you know.

[Cessna Invesco Palin]

9. Delete dupe. n/t

[frickaline]

2. McCain: "Fundamentals Of Our Economy Are Still Strong"

If you ignore the unemployment, market contractions, inflation, fuel costs, credit failures, bank failures, gas shortages, confidence issues and all the other bad market fundamentals, then our market is very strong!

[shraby]

6. Time to start calling McCain John McHoover. n/t

[smiley_glad_hands]

3. I'd like to know, out of curiousity, what is still made here? eom

[El Pinko]

7. Don't you remember? The Bushies decided that burger-flipping counted as "Manufacturing"

http://www.nytimes.com/2004/02/20/business/20jobs.html?ei=5007&en=5e1f311d886fa004&ex=1392699600&adxnnl=1&partner=USERLAND&adxnnlx=1222873231-imsd1Xg8l20zcSO0Gt/WdA

[ogneopasno]

4. "Manufacturing is on the brink of collapse"?

Good God, where have they been the last 20 years?

[El Pinko]

5. DUH. It's been contracting through all the fake "booms" of the last 3 decades...

...and that has been by design of the power elites whose ultimate goal it is to turn America into a 3rd-world cesspool and laissez-faire free-for-all for the rich.