U.S. factory activity dips; consumer spending cools

reuters ^ | Mon Aug 3, 2015 2:02pm EDT | Lucia Mutikani

[BenLurkin]

The Institute for Supply Management said its national factory activity index fell to 52.7 last month from a reading of 53.5 in June. A reading above 50 indicates expansion in the manufacturing sector.

A gauge of new orders received by factories rose to a seven-month high, while inventories continued to decline.

There was growth in 11 of the 18 manufacturing industries, including furniture, fabricated metal products, electrical equipment, appliances and components, and transportation equipment. Five industries including machinery reported that production had contracted in July.

Manufacturing has been hobbled by a strong dollar, which has pressured the profits of multinational corporations, and deep spending cuts in the energy sector after last year's plunge in crude oil prices.

Weak global demand also has been a drag on manufacturing, which accounts for about 12 percent of the U.S. economy.

...

In a separate report, the Commerce Department said consumer spending - which accounts for more than two-thirds of U.S. economic activity - rose 0.2 percent after a 0.7 percent increase in May. When adjusted for inflation, consumer spending was unchanged after rising 0.4 percent in May.

[Steely Tom]

“Dips” being a word that focus-group tests better for Obama than does “drops,” or “crashes,” or “plunges,” or “craters,” or any of the other similar words that would be used if a Republican president was in the White House.

[DoughtyOne]

Well, there you have it. Unemployment is set to go down again. This has been the pattern for the Obama years.

LOL

[Jim from C-Town]

It’s official. It is ‘Recovery Summer’ once again.

[hosepipe]

America makes things?.................. who knew..

[grania]

That’s it. Can’t raise interest rates for savers. Because that strategy has worked so well so far....

[Tax-chick]

What recession?

*drink*

[VTenigma]

UNEXPECTED!