Tag Archives: Institute for Supply Management (ISM)

All The Speeches In The World Won’t Make Up For Bad Policies

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On Monday, The Conservative Review posted an article about manufacturing in America.

The article reports:

U.S. manufacturing reached its lowest point since the start of the pandemic, according to a report released just as President Joe Biden embarked on a tour of U.S. factories to tout his promise to boost the industry.

On Monday, the Institute for Supply Management’s manufacturing index reached its lowest point, 46.3, since May 2020, Reuters reported. Excluding the pandemic recession, the index, known as PMI (Purchasing Managers’ Index), was at its lowest point since 2009.

PMI is a tool for identifying economic trends in the manufacturing and service sectors based on business conditions at hundreds of major companies. A PMI below 50 indicates decline.

The article concludes:

The Biden administration has made its taxpayer-funded push to build a “clean energy economy” a central part of its plan to boost U.S. manufacturing. But critics have questioned the billions of dollars invested in green energy companies, which have enriched left-wing billionaire megadonors to the Democratic Party along with Chinese manufacturers that source materials for the firms.

The two things that the Trump administration did to bring manufacturing back to America were to lower the tax rate on corporations and to supply dependable and relatively inexpensive energy. President Biden has undone both of those policies. It should also be noted that the minerals needed to create green energy at imported–the Biden administration has blocked the mining of these minerals in America. Even if America were able to switch over to green energy, green energy is not as reliable as fossil fuel and right now it is considerably more expensive. Spain and Germany both attempted to convert to green energy and had to return to fossil fuel to avoid bankrupting their countries. If we continue down the road the Biden administration is taking us down, President Biden will eventually bankrupt America.

Good News From The Manufacturing Sector

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One America News reported yesterday that U.S. factory activity accelerated to its highest level in nearly 2-1/2 years in December.

The article reports:

The strength in manufacturing reported by the Institute for Supply Management (ISM) on Tuesday likely helped to soften the blow on the economy in the fourth quarter from the relentless spread of COVID-19 and government delays in approving another rescue package to help businesses and the unemployed.

The article also notes that there are bottlenecks in the supply chains due to the increased number of coronavirus cases.

The article also concludes:

The ISM’s forward-looking new orders sub-index rose to a reading of 67.9 last month from 65.1 in November. Strong orders growth boosted manufacturing employment, which had contracted in November. The ISM’s manufacturing employment gauge rebounded to 51.5 from a reading of 48.4 in November.

But the supply chain gridlock is driving up costs for manufacturers. The survey’s prices paid index jumped to a reading of 77.6 last month, the highest since May 2018, from 65.4 in November. That raises the risk of higher inflation this year, though high unemployment could limit price pressures.

The labor market has lost steam in tandem with the economy since job growth peaked at a record 4.781 million in June.

According to an early Reuters survey of economists, nonfarm payrolls probably increased by 100,000 jobs last month after rising by 245,000 in November. That would mean the economy recouped about 12.5 million of the 22.2 million jobs lost in March and April. The government is scheduled to publish December’s employment report on Friday.

Manufacturing has come back to America because of the trade policies of President Trump. People in areas of the country that have had high unemployment for years have gotten their manufacturing jobs back. It is a pretty safe bet that under Joe Biden, China will take over American manufacturing again and the American worker will be out of luck.