US Manufacturing "Took Sharp Turn For The Worse" In June
https://zerohedge.com/economics/us-manufacturing-took-sharp-turn-worse-juneDespite the recent resurgence in upside surprises for US macro data, the US Manufacturing sector remains deep in contraction (sub-50) based on the ISM and PMI surveys driven by a sharp fall in new orders.
S&P Global US Manufacturing 46.3 for June, down from 46.9 prior.
US ISM Manufacturing 46.0 in June, down from 46.9, big miss relative to 47.2 exp
Source: Bloomberg
American manufacturing took a nosedive in June.
“The health of the US manufacturing sector took a sharp turn for the worse in June, adding to concerns over the economy potentially slipping into recession in the second half of the year.
“Leading the darkening picture was a severe drop in demand for goods, with new orders slumping at a rate among the steepest since the global financial crisis of 2009. Companies report that customers have become increasingly reticent to spend amid the rising cost of living, higher interest rates, growing concerns about the economic outlook and a switch in spending to services.
“Exacerbating the downturn has been a continued focus on inventory reduction as manufacturers, their suppliers and their customers all seek to cut warehouse stocks in the face of weakening demand.
It is the steepest since 2009.
