Local economies have been blossoming for a time now. It is the most secure method of protecting an economy against all these issues that Wall Street faces. These losses are just more indication of the poor insight to Wall Street. There isn't anything that is going to change this. Wall Street has been riding high on air and not much more.
The USA is a stable market and that should be appreciated and emulated. The rest of the world will catch up after they have lost their shirts a few times. Each country should have their own manufacturing sector that hires their own citizens receiving good wages. It is only then the world trade markets will come alive. Wall Street should pay attention to the need for a stable middle class globally.
February 1, 2016
By Shobhana Chandra
U.S. manufacturing shrank (click here) in January for a fourth consecutive month as businesses cut staffing plans. Growth resumed in new orders and production, indicating some stabilization in the industry.
The 48.2 reading for the Institute for Supply Management’s index followed December’s 48 level that was the weakest since June 2009, data from the Tempe, Arizona-based group showed Monday. The results were lower than the 48.4 median forecast in a Bloomberg survey of 79 economists. Levels less than 50 for the gauge indicate contraction.
Factories are buffeted by persistent weakness in the oil industry, the stronger dollar and cooling overseas markets that also limited growth last quarter. The report showed the gauge of new orders, a leading signal for production, grew for the first time in three months, which would help manufacturing eventually strengthen.
“Manufacturing is the weakest part of the economy,” Brian Jones, a senior U.S. economist at Societe Generale in New York, said before the report. “It’s to do with what’s going on in the petroleum sector, and sluggish overseas demand. The stronger dollar is also hurting manufacturers. We’re hoping things have bottomed out, but it’s only a hope at this point.”
Economists’ estimates in the Bloomberg survey ranged from 47 to 50.5....
