The Wall Street Journal reports today
that, for the first time in three years, U.S. manufacturing has plunged to an
index of 49.7 in June after sitting at 53.5 in May.
An index below 50 indicates the manufacturing sector is not only slowing
but contracting.
At the American Enterprise Institute, James Pethokoukis wonders
if the American economy isn't once again in
recession after three years of a shaky economic expansion:
But these
numbers are just the latest in a long string of worrisome reports including
rising initial unemployment claims, slowing job growth, falling consumer
confidence, and declining durable goods orders. Oh, and the rest of the global
economy is slowing, too.
RDQ Economics reports that this is the largest manufacturing decline since
9/11 and the second largest since the worst of the Carter Recession in 1980.
This coming Friday, jobs numbers for the month of June will be released,
and early signs do not look promising. On Thursday, we learned that the GDP had
plunged from 3.0% in the previous quarter to 1.9%. Initial unemployment claims
have also creeped back towards the dreaded 400,000 mark. 386,000 last week,
392,000 the week prior.
But there is even worse news for the economy…
The upholding of ObamaCare by our Supreme Court means
that America's second-to-the-last chance to kill off this extraordinary drag on
our economy resulted in a big miss last week. Our last chance is this November.
Job creators understand this and, up till now, have felt uncertain about adding
new employees. Now they’re absolutely certain that new hires are a bad idea
given the burdensome regulations, costs, taxes, and fines headed their way
regardless -- but even more so now with each new hire.
New hires can not only put job creators in a new cycle of beauracratic
pain, but God only knows what nasty surprises await in the 2600 page
monstrosity ACA, which is now the law of the land.
John Nolte
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