Manufacturing Hits Lowest Level In 2 Years
The markets reacted positively to the debt ceiling deal this morning, but bad news on the manufacturing level sent them lower.
The Institute for Supply Management announced that manufacturing activity barely grew in July. The AP reports:
... [The] trade group of purchasing executives, says its index of manufacturing activity fell to 50.9 percent in July from 55.3 percent in June. That's the lowest reading since July 2009, one month after the recession officially ended. Any level above 50 indicates growth.
So what does this mean?
"The bottom line is simply that the economic recovery is continuing to falter," Millan Mulraine, senior U.S. macro strategist at TD Securities, told Market Watch. He added: "To be sure, this is only one report. However, given that stellar historical track record of this indicator in tracking economic activity it is pointing to a further disconcerting negative turn in the trajectory of the recovery."