Thu May 31, 2012, 12:15 PM
Purveyor (20,508 posts)
U.S. Business Activity Expands at Slower Pace as Orders, Production Cool
By Lorraine Woellert - 2012-05-31T14:11:24Z
Business activity in the U.S. expanded in May at the slowest pace in more than two years as orders and production cooled.
The Institute for Supply Management-Chicago Inc. said today its barometer decreased to 52.7, the lowest since September 2009, from 56.2 in April. Readings greater than 50 signal growth. Economists projected the purchasing managers’ gauge would rise to 56.8, according to the median of 55 estimates in a Bloomberg News survey.
While demand for automobiles continues to fuel factory output, the debt crisis in Europe and a slowdown in China may cause some businesses to cut back on spending and hiring. Stocks fell, sending the Standard & Poor’s 500 Index toward its biggest monthly decline since September.
“When you’re in a fragile economy and the world around you is showing severe stress fractures, it’s going to impact us,” said Tom Porcelli, chief U.S. economist for RBC Capital Markets in New York, the top-ranked forecaster for the Chicago index. “You’re seeing those headwinds flow fully through the U.S. economy.”
4 replies, 740 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
U.S. Business Activity Expands at Slower Pace as Orders, Production Cool (Original post)
Response to Purveyor (Original post)
Thu May 31, 2012, 02:21 PM
SoutherDem (2,306 posts)
2. Call me a pessimist but,
I see the Republicans especially the Teabaggers continue to everything they can to slow, stop or crash the economy before November.
Also, I can see business owners especially those with highly regulated industries or those which receive or want to receive tax cuts make decisions which may hurt in the short term hoping for a Republican wave in November.
This is of course just my opinion.