American manufacturing is in recession

01-Oct (BusinessInsider) — Here’s a bad thing: American manufacturing is in a recession.

On Wednesday, we got the latest data on manufacturing activity in the Midwest from the Chicago purchasing manager’s index reading, which unexpectedly showed that activity contracted in September. The Institute for Supply Management’s Milwaukee report on business also indicated a contraction in activity.

And Thursday’s data didn’t exactly help, with ISM’s national manufacturing index coming in at 50.2, still indicating expansion but the lowest reading for this measure since May 2013. Additionally, Markit’s manufacturing PMI remained near August’s 22-month low.

So, overall discouraging data.

But these were merely the latest in a series of indications that, broadly, the US manufacturing sector stinks right now.

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PG View: Again, not exactly the ideal timing for a rate hike . . .