Double Dip Watch: Manufacturing Shrank For First Time in Three Years

The patient was misdiagnosed, bad drugs pumped into his system, and now he's in critical condition.

"This is not good," said Dan Greenhaus, chief economic strategist at BTIG, an institutional brokerage. Though the report "does not mean recession for the broader economy, it is still a terribly weak number."

The trade group of purchasing managers said its index of manufacturing activity fell to 49.7. That's down from 53.5 in May. And it's the lowest reading since July 2009, a month after the Great Recession officially ended. Readings below 50 indicate contraction.

It's not just that we've gone into contraction in this area -- it's that we did so by a big, sharp fall. At the same time most other indicators are pointing downwards.

This guy says this number doesn't mean recession for the broader economy. I assume he means it doesn't necessarily mean recession.

Okay, that would be fine, if consumer spending, consumer confidence, hiring in other sectors, and GDP were growing. But they're not.

posted by Ace at 02:45 PM

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