Is Manufacturing Slowing Down?

By Matthew McMullan
Sep 03 2019
Freight lines up near Los Angeles. | Getty Images

ISM index suggests a contraction, but it’s no guarantee.

There was new ISM data released today. And it wasn’t good. Oh no!

The Institute for Supply Management (ISM)’s monthly index is considered a pretty good gauge of activity in the U.S. manufacturing sector. ISM goes around, asks a bunch of folks whether they’re buying supplies or not, and averages them (and their comments) out. A score above 50% is good. Below is bad – it suggests a contraction in manufacturing activity. Anyway, it’s now at 49.1%.

This is no guarantee the manufacturing sector is about to slip. Somebody on the Internet who is paid to do economic analysis pointed out:

Meanwhile, another important gauge of the manufacturing sector’s health – employment data – will be out this Friday when the jobs report comes out.

But look, let's say this is fraying your nerves. The trade fight with China is dragging a little bit, the fight seems to be a drag on manufacutirng, and President Trump seems to be trying to influence it all by tweet.

Is there something Congress could do … that polls well … that Trump himself says (or at least implies) he wants … and is incredibly overdue … that could help improve the fortunes of the American manufacturing sector?

Infra … infrastruct … I can’t think of the word!