Data released today shows that:
- manufacturing PMI (the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories) has declined
- manufacturing prices (the relative level of prices paid for goods and services) has increased
- construction spending (the total amount that builders spent on construction projects) declined sharply
as shown on the three graphs below.
This latest data shows a contraction in manufacturing and construction spending while under the influence of higher manufacturing prices. As related to the personal income/spending/price of goods and services scenario that I described in my last post, this does not provide the proper support necessary for healthy and sustainable economic growth.