• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 8 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 35 mins Prosecutors Fine Bosch 90 Million Euros For Emissions Cheating Role
  • 8 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 22 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 8 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 1 hour Apple Boycott in China
  • 20 hours IMO2020 To scrub or not to scrub
  • 17 mins California's Oil Industry Collapses Despite Shale Boom
  • 20 hours IMO 2020 could create fierce competition for scarce water resources
  • 20 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 4 days Some Good News on Climate Change Maybe
  • 3 mins Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 16 hours Apple Bid To Buy Tesla in 2013 For $240 a Share
No, The Oil Glut Hasn’t Disappeared

No, The Oil Glut Hasn’t Disappeared

Weaker than expected oil demand…

U.S. Manufacturing Declines After 5 Straight Months Of Modest Growth

Fed building

The American manufacturing industry declined in August after five consecutive months of growth as producers deal with the consequences of low oil prices and a weak global economy.

An index monitored by the Institute for Supply Management, which tracks domestic manufacturing activity, reported a dip to 49.4 from 52.6 in July of this year. Figures above 50 indicate sector growth, while figures below 50 indicate contraction.

Experts expected growth to decline to 52, however, they were surprised to find an overall market downsizing.

Of the 18 aspects of American manufacturing the index tracks, 11 shrank over the course of August. Employment and production rates were both below the 50 percent mark.

The industry last contracted in February, which was the last of a series of months in late 2015 and early 2016 with decreasing sector activity.

USA Today reported that the slowdown could also be attributed to China’s slowing economy, the European Union’s many financial crises, and the effects of a strong dollar on American export prices.

"The data from this report indicate that the U.S. manufacturing sector remains in an extended period of stagnation following a modest improvement in recent months," Barclays' chief U.S. economist, Michael Gapen, said in a note to the consulting firm’s clients.

The S&P 500 index dropped by 0.17 percent after the report was released, reaching an almost one-month low.

“All eyes are focusing in on tomorrow’s jobs report -- some of the softness we’ve seen in the market this week is a little bit of anxiety that the [Federal Reserve] might be raising rates in September as opposed to pushing back to December,” Tom Wilson, a senior director at Brinker Capital Inc. told Bloomberg.

The Bureau of Labor Statistics is due to release its job report tomorrow. Growth of 250,000 jobs or more could lead the Fed to raise interest rates later this month, according to Wall Street analysts.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News