Purchasing Managers Report That Production Declines Yet Again

Today brings some more sobering news on the economic front. The monthly Purchasing Managers Index declined yet again in September, capping a ten-point drop over the past year. It is now well below 50, the point at which activity is not merely growing slowly, but actually contracting:

Virtually every subindex declined in September, as did 15 out of 18 industries (the three exceptions were Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Chemical Products).

Over the past four months, production is down, employment is down, inventories are down, customer inventories are down, prices are down, exports are down, and imports are down. All are below 50. “Global trade remains the most significant issue,” said the chair of the ISM, “as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth.”

If global trade weren’t in such a rut, all of these indexes would likely still be expanding. Thanks, Donald.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate