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Infographic – U.S. Mfring Shrinks, First Time Since 2009

Chart: U.S. manufacturing

Click on image for full-size view (Statista)

24 Aug. 2019. Manufacturing activity in the U.S. contracted for the first time since 2009, at the end of the great recession, another sign of a slowing economy. The IHS Markit Flash Manufacturing Purchasing Managers Index, or PMI, for August fell to 49.9, below the 50.0 neutral line, indicating a shrinking manufacturing sector. Our friends at Statista track the index’s ups and downs since January 2018, in this weekend’s infographic.

Manufacturing and research have symbiotic relationship in a modern economy. According to the Brookings Institution and Rockefeller Foundation, advanced manufacturing that applies research into new products and processes is an economic stimulant and generator of high-paying jobs. Co-locating manufacturing and R&D encourages innovation and reduces the time needed to implement new solutions. Thus we follow new manufacturing processes at Science & Enterprise from academic and company labs.

IHS Markit says the downturn in this month’s Flash PMI is a result of a large reduction in new orders for manufactured goods, which the group describes as “the sharpest for exactly 10 years.” Manufacturers also are reducing their inventories of raw materials and finished goods, adding to the lower index levels. In addition, Tim Moore, Economics Associate Director for IHS Markit notes in a company statement, “Manufacturing companies continued to feel the impact of slowing global economic conditions, with new export sales falling at the fastest pace since August 2009.”

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