CNNFN writes article about U.S. in longest manufacturing recession since ’09:
by Patrick Gillespie @CNNMoney March 1, 2016: 11:02 AM ET
factory manufacturing
America’s assembly lines are hurting.
The U.S. manufacturing sector shrank for the fifth straight month in
February. It’s the longest recession for the sector since 2009. The
ISM manufacturing index hit 49.5% in February. Any number below 50
means the sector contracted.
Right now America’s economy has two story lines: shoppers and employers
are showing signs of strength and resilience in the face of a
gloomy global outlook. But at the same time, the manufacturing sector
has nosedived.
The concern is that the trends in services and manufacturing won’t
diverge forever: At some point, one will help or hurt the other.
“We are on recession watch,” says Steve Chiavarone, a portfolio manager
at Federated Investors. “Will the services sector remain resilient and
pull manufacturing up? Or will manufacturing pull services down?”
The good news is that consumers and services make up 70% of U.S.
economic activity. Manufacturing only makes up about 10%.
U.S. manufacturers are reeling from two key factors. Economic growth
has slowed down in many developing countries because prices for
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