The Epoch Times reported the following yesterday:
Manufacturing in the United States, as measured by a key business activity gauge, surged to a 15-month high in July, exceeding economists’ expectations.
The Institute for Supply Management (ISM) business survey, published Aug. 3, shows that its topline manufacturing activity indicator, called the Purchasing Managers’ Index (PMI), surged to a reading of 54.2 in July.
Readings above 50 indicate expansion, while those below mean contraction.
“The PMI signaled a continued rebuilding of economic activity in July and reached its highest level of expansion since March 2019,” Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a statement (pdf).
Economists polled by Reuters predicted the manufacturing index would rise to 53.6 in July, so the higher-than-expected number is encouraging, particularly in light of April’s 11-year low of 41.5.
Why is it that when a Republican is the President, good economic news always exceeds expectations?
The article also notes:
Another manufacturing sector gauge tapped by ISM in the survey is the New Orders measure, which soared to 61.5, up 5.1 percentage points from June.
“Orders starting to pick up. [An] increase of about 35 percent to 40 percent,” a chemical product manufacturing executive said.
“Incoming orders are slow. This is usually our busiest time of the year, but production is reduced due to lack of demand. Additional layoffs expected,” an executive at a furniture maker said.
Another gauge, the production index, showed 4.8 percentage point growth from June to July, coming in at 62.1, the highest reading of all the ISM gauges.
“Manufacturing outlook has improved greatly in June, as business has resumed at nearly 100 percent. We have implemented a number of safeguards that are costing extra money, but we are running,” an executive at a computer and electronics products maker said.
There was also some negative news included in the article, but considering the fact that the country has been locked down or in semi-lockdown since March, that is not surprising. The two-week shutdown has extended far past where it was scheduled to be. I would also like to note that the purpose of the lockdown was to avoid overwhelming our hospitals. Now we are in semi-lockdown to avoid the spread of the disease. There is significant information that this is not the best course of action (see article here), so why are we still in semi-lockdown? Why are churches limited in the amount of people they can allow in their buildings when the John Lewis funeral was packed? Why was there an exception to the quarantine rule for the people who attended the John Lewis funeral? Has the damage from the lockdown now exceeded the possible damage from the disease?