|US Manufacturing Continues Plunge|
|by Tom McGregor||Tue, Sep 11, 2012, 05:51 PM|
Amidst the turbulence of the Obama Recession, U.S. factory activity has shrunk for the third straight month in August as new orders, production and employment all dropped. The report reveals more signs that manufacturing is struggling globally.
The Houston Chronicle reports that, “the Institute for Supply Management, a trade group of purchasing managers, said Tuesday its index of manufacturing activity ticked down to 49.6. That’s down from 49.8 in July and the lowest reading in three years. A reading below indicates contraction.”
Weak consumer spending and steady declines in business orders for large machinery and other capital goods have been slowing factory output.
According to the Houston Chronicle, “the report follows other data showing manufacturing has slowed overseas. A measure of factory activity fell to its lowest level in more than three years last month. And manufacturing in Europe has also stagnated in the face of the region’s financial crisis.”
Paul Dales, senior U.S. economist at Capital Economics, says that Obama’s plan to raise taxes if he’s re-elected “is taking its toll on activity.”
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