[Marxism] ISM Measure

[S. Artesian]

Below, excerpt from the article at WSJ.com (you need a sub to get the whole 
thing, this is the core).  What isn't pointed out is that predictions were 
for the manufacturing sector index to come in at 35.4 NOT 32.4.  A drop of 
this severity, and so much greather than anticipated, is virtually unheard 
of in the history of the index.
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WSJ.com

By MICHAEL S. DERBY

NEW YORK -- The U.S. factory sector closed out 2008 on a decidedly sour 
note, marking its weakest period of activity in nearly 30 years.

The Institute for Supply Management reported Friday that its manufacturing 
sector index came in at 32.4 during December, from 36.2 in November and 38.9 
in October. It had been expected to stand at 35.4.

December's reading was the weakest since June 1980. The report suggested 
that the broader economy continues to remain troubled, in a recession that 
harkens back to the steep downturn that prevailed during the opening years 
of the 1980s.

There was little in the way of good news to be found in the report. "The 
decline covers the full breadth of manufacturing industries, as none of the 
industries in the sector report growth at this time," said Norbert Ore, who 
leads the survey for the ISM. He added, "manufacturers are reducing 
inventories and shutting down capacity to offset the slower rate of 
activity."

Ore said a recovery might start to come into view when five or so of the 18 
industries in the report begin to show improvement. But he doesn't expect to 
see that anytime soon.
In the report, the ISM said that the production index stood at 25.5, from 
31.5. Meanwhile, the new orders index, which hints at future activity, was 
weak at 22.7, from 27.9. The ISM said that reading was the lowest since 
January 1948. Hiring contracted, with the employment index at 29.9, versus 
November's 34.2.