The economy continues to reel from the effects of Obamanomics. The Wall Street Journal just reported that US manufacturing plunged in June as demand crashed. Of course, this news was unexpected for economists.
The U.S. manufacturing sector contracted in June for the first time since July 2009 as new demand crashed, according to data released Monday by the Institute for Supply Management.
The ISM’s manufacturing purchasing managers’ index plunged to 49.7 last month from 53.5 in May. A reading above 50 indicates expanding activity.
Economists surveyed by Dow Jones Newswires had expected the June PMI to slip only to 52.0.
“Comments from the panel range from continued optimism to concern that demand may be softening due to uncertainties in the economies in Europe and China,” the ISM report said. (Read More)
Yesterday Bloomberg reported that consumer confidence also has fallen.
U.S. consumer confidence fell in the second quarter of 2012 on concern for the economy and job security, according to a survey by Nielsen Holdings NV. (NLSN)
Nielsen, a global information and measurement company, said its index of U.S. consumer confidence fell five points in the period to 87. Its lowest point on record was 80 points in the first half of 2009. The company surveyed 500 people in the U.S. online from May 4 to May 21.
The top concern for U.S. consumers was the economy, with 42 percent citing it as their main worry. Concern for job security also increased from 18 to 22 percent. Concerns for debt, rising fuel and food prices decreased, the survey said. (Read More)