The Demise of American Manufacturing
The election has stolen the media’s attention with endless rounds of he said/she said and finger-pointing, but there’s more going on in the U.S. than just a presidential election.
Or rather … I should say that there’s less going on…
At the start of the week, the Empire State manufacturing report — information gathered by the New York Federal Reserve on manufacturing in the New York area — showed a drop to negative 6.8 in October from September’s reading of negative 2.0. Readings below zero indicate contraction within a region’s manufacturing sector.
As you can see in the chart above provided by the New York Federal Reserve, the index doesn’t spend a considerable amount of time below zero. In fact, you have to go back to the Great Recession that kicked off in 2008 to find the last time the New York area spent so much time in contraction mode. Not a good sign at all.