U.S. Manufacturing Sinks To Lowest Level In Three Years
U.S. manufacturing orders fell nearly 4 percentage points in June, falling short of its expected 52 percent of activity, according to Reuters. The figures fell short of economists' projections, causing a re-evaluation of the state of the economy as manufacturing is a standard indicator of growth.
- It was the first time since July 2009 that the index has fallen below the 50 mark that separates expansion from contraction. That was shortly after the U.S. economy emerged from recession.
- Manufacturing has been one of the drivers of the U.S. economic recovery, which now appears to be losing momentum over fears about the euro zone's debt crisis, a slowdown in China and uncertainty over domestic fiscal policy.
- "Clearly this is the biggest sign yet that the U.S. is catching the slowdown that is well under way in Europe and China," said Paul Dales, senior U.S. economist at Capital Economics in London.
- Dales said the report is consistent with an economy that is growing at an annualized rate of a little below 1 percent after 1.9 percent growth in the first quarter, dismissing talk that the number signaled a new U.S. recession was coming.
Find more of Neon Tommy's continued economic coverage here.
Read about the impact the Eurozone debt crisis may have on the U.S. economy here.
Reach Executive Producer Paige Brettingen here.