The PMI declined again in August and it was not just due to less important readings like Production or Deliveries. The key failures are highlighted. Backlogs grew for the period but are firmly in contraction for the trend. Not good. None of these are good.
Now, I cannot stand the man named Donald J. Trump. But laying this entirely at his feet would not make sense because while the trade war is having an effect he is practically demanding that the Fed withdraw support for the US dollar and as a former manufacturing guy I know all too well that a chronically firm USD is not good for the sector.
Speaking of the Fed, manufacturing is another of those levers they would pull along with a tanking stock market and tanking inflation expectations when they decide to promote the next inflation. Give it some time Trump. They will roll over eventually.
The trend in new orders has been steadily marching southward.
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