#Economy & #Stocks Review - US Manufacturing Contracting

E&S Review

Much of today's economic data, including officially collected and produced time series, is highly unreliable. Statisticians use well-documented techniques such as geometric smoothing, seasonal adjustments, substitution, double counting, and hedonic adjustments to modify economic outcomes dating back to the 1980s. Politicians and central bankers often leverage these techniques for political gain.

Data manipulated by these statistical methods are frequently revised without clear notification to the public, especially when administrations or public policies change.

Subscriber Comments

US Manufacturing Contracting

U.S. manufacturing activity contracted in October for the eighth straight month, according to the latest ISM® Manufacturing PMI® report. The PMI® fell to 48.7%, down 0.4 points from September’s 49.1%, signaling a faster pace of contraction.

Key indicators showed mixed results:

New Orders: 49.4% (slightly improved but still contracting)
Production: 48.2% (down from 51%)
Employment: 46% (contracting at a slower pace)
Prices: 58% (still rising, but at a slower rate)
Supplier Deliveries: 54.2% (slower deliveries)
Inventories: 45.8% (contracting faster)

While demand indicators such as new and export orders improved modestly, they remained below growth levels. Only two of the six largest manufacturing industries—Food, Beverage & Tobacco Products and Transportation Equipment—expanded in October.

Overall, manufacturing weakness persisted amid economic uncertainty, with 58% of the sector’s GDP contracting and 41% in strong contraction territory (PMI® ≤ 45%).

Click To Read

Use your Subscription Level Access Code to access the full review.

Click & Enter Access to Continue Reading

Follow me on 𝕏 or Facebook for further discussion.

----------------------------------

The Matrix provides market-driven trend, cycles, and intermarket analysis.