Overall manufacturing fell 0.8% in June, new orders down 1.9%

posted at 10:45 am on August 3, 2011 by Ed Morrissey

Now that the debt-ceiling impasse has concluded, Barack Obama wants to go on a “jobs tour” through the Midwest:

The bruising debt fight behind him for now, President Barack Obama is planning a Midwest bus tour later this month that will focus on jobs.

The White House on Wednesday confirmed plans for the trip the week of Aug. 15 but didn’t release details.

That may be because they’ll have trouble finding the jobs out here.  The latest report from Commerce on manufacturing shows the entire sector fell off by 0.8% in June, which follows a reported fall in the ISM index for July:

New orders for manufactured goods in June, down two of the last three months, decreased $3.8 billion or 0.8 percent to $440.7 billion, the U.S. Census Bureau reported today.  This followed a 0.6 percent May increase.  Excluding transportation, new orders increased 0.1 percent.  Shipments, up following two consecutive monthly decreases, increased $1.0 billion or 0.2 percent to $444.3 billion.  This followed a slight May decrease.  Unfilled orders, up fourteen of the last fifteen months, increased $2.5 billion or 0.3 percent to $863.2 billion.  This followed a 0.9 percent May increase.  The unfilled orders-to-shipments ratio was 6.08, down from 6.11 in May.  Inventories, up twenty of the last twenty one months, increased $1.4 billion or 0.2 percent to $594.4 billion.  This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.8 percent May increase.  The inventories-to-shipments ratio was 1.34, unchanged from May.

New Orders.  New orders for manufactured durable goods in June, down two of the last three months, decreased $3.8 billion or 1.9 percent to $192.4 billion, revised from the previously published 2.1 percent decrease.  This followed a 2.0 percent May increase.  Transportation equipment, also down two of the last three months, had the largest decrease, $4.3 billion or 8.6 percent to $45.3 billion.  New orders for manufactured nondurable goods increased slightly to $248.2 billion.

Inventories grew, although at a slower pace than the previous month, indicating further slowing ahead:

Inventories of manufactured durable goods in June, up eighteen consecutive months, increased $1.8 billion or 0.5 percent to $357.8 billion, revised from the previously published 0.4 percent increase.  This was at the highest level since the series was first published on a NAICS basis and followed a 1.3 percent May increase.  Transportation equipment, also up eighteen consecutive months, had the largest increase, $1.2 billion or 1.1 percent to $109.0 billion.  Inventories of manufactured nondurable goods, down two consecutive months, decreased $0.4 billion or 0.2 percent to $236.5 billion.  This followed a slight May decrease.  Petroleum and coal products, also down two consecutive months, drove the decrease, down $1.0 billion or 1.8 percent to $52.8 billion.  By stage of fabrication, June materials and supplies decreased slightly in durable goods and decreased 0.8 percent in nondurable goods.  Work in process increased 1.0 percent in durable goods and 0.8 percent in nondurable goods.  Finished goods increased 0.5 percent in durable goods and decreased 0.1 percent in nondurable goods.

Reuters was surprisingly unsurprised by the news:

New orders received by factories fell in June, pulled down by weak demand for transportation equipment, government data showed on Wednesday.

The Commerce Department said orders for manufactured goods fell 0.8 percent after a revised 0.6 percent increase in May. Economists had forecast a 0.7 percent decline after a previously reported 0.8 percent rise.

Manufacturing has shouldered the economy’s recovery and the slowdown in factory orders in June further diminished prospects of a strong and swift step-up in growth after a very weak first half.

The new data strongly suggests that the Q2 GDP number was highly optimistic.  Commerce will issue its first revision of that number in the final week of this month, and don’t be surprised to see the number go below 1%.  The falloff in manufacturing and increase in inventories indicates an economic slowdown from Q1, not increased production.

The July performance from the ISM index shows that Q3 will get off to a worse start than the end of Q2.  Unless demand suddenly picks up, we will probably be looking at a negative quarter in either Q3 or perhaps even when Q2 gets its final revision in September.  Either way, the US economy is going in the wrong direction, and won’t go in the right direction until investors start getting signals that risk has become better defined and is receding.  The only way to accomplish that now is to either loosen a monetary policy that is nearly impossible to loosen further, lower capital-gains tax rates, or start removing regulatory road blocks to expansion and innovation.  The Obama administration has refused to do the latter two, which means we can expect stagnation and economic decline through 2012 as well.

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So it’ll be a short tour?

catmman on August 3, 2011 at 10:48 AM

The markets are plunging. Art Cashin just said that S&P just broke through a significant technical (1249) which could signal S&P down to 1120. Watch out. Today could get a little hairy.

Weight of Glory on August 3, 2011 at 10:49 AM

Either way, the US economy is going in the wrong direction, and won’t go in the right direction until investors start getting signals that risk has become better defined and is receding.

Yeah, that’s not gonna happen as long as Failbama Nero is still president. We are in for one ugly ride downhill.

dogsoldier on August 3, 2011 at 10:49 AM

A campaign tour?

ORconservative on August 3, 2011 at 10:50 AM

It’s a three letter word, Mr President…JOBS!

lol. What a couple of socialist douchebags…

Battlecruiser-operational on August 3, 2011 at 10:51 AM

WoW the stock market is dropping like a rock. I guess wall street sees the writing on the wall.

dogsoldier on August 3, 2011 at 10:51 AM

With the way he has been dicking around with the economy, it’d be more suited to have Obama conduct this tour of his from the Weinermobile!

pilamaye on August 3, 2011 at 10:53 AM

Well bho can’t be bothered with all this for a few days, he is having the time of his life doing the bd/fund raiser/vacation/and finally got to get out of dc!
L

letget on August 3, 2011 at 10:54 AM

He did this “jobs tour” before but just about every company he stopped at to give a speech ended up going out of business within 8 months.

tommyboy on August 3, 2011 at 10:54 AM

The bruising debt fight behind him for now, President Barack Obama is planning a Midwest bus tour later this month that will focus on jobs.

A bus tour? Really?
First, it smacks of copycatting Palin. Second, it’s a security nightmare that makes no sense.

John Deaux on August 3, 2011 at 10:55 AM

what part of gasoline at $3.5 was a tipping point do these geniuses not understand?

This is the problem of the elites living in a bubble. They don’t have to worry about gas prices or food prices because they have insulated themselves from the economy due to sweetheart deals and wealth.

unseen on August 3, 2011 at 10:56 AM

Happy Birthday, President D-ck.

Doughboy on August 3, 2011 at 10:56 AM

President Barack Obama is planning a Midwest bus tour later this month that will focus on jobs.

Jobs tour my b****! This only means that President Pull-Ups is planning a campaign tour in the Midwest and plans to get the taxpayers (the few that are left) to pay for it!

katablog.com on August 3, 2011 at 10:56 AM

The Obama Recession, you bone it, you own it.

Chip on August 3, 2011 at 10:56 AM

Well bho can’t be bothered with all this for a few days, he is having the time of his life doing the bd/fund raiser/

letget on August 3, 2011 at 10:54 AM

I heard on the radio this morning that he missed 10 fundraisers due to the debt ceiling debate.No worries those, he thinks about jobs every morning…keeping his job.

WashJeff on August 3, 2011 at 10:57 AM

In what way is this “jobs tour” going to help anything? Has his face helped anything else? Hey Slick, any fundraisers planned?

Cindy Munford on August 3, 2011 at 10:58 AM

It’s all part of Barry’s Rovian plan to run as Reagan in 2012. Instigate a crushing recession in the last two quarters then run on the V shaped recovery back to 9% unemployment just before the election.

deadman on August 3, 2011 at 10:58 AM

I’ll be bringing tomatoes and eggs to greet him….

PatriotRider on August 3, 2011 at 10:59 AM

The bruising debt fight behind him for now, President Barack Obama is planning a Midwest bus tour later this month that will focus on jobs.

Can he go to WI to talk about job creation there? If he does, doesn’t that support Gov. Walker and the changes he made in WI?

WashJeff on August 3, 2011 at 11:00 AM

Obama is nothing but a traveling circus designed to raise campaign funds. This poor sick Republic is doomed.

rplat on August 3, 2011 at 11:01 AM

It seems that the wonder volt only sold 125 last month! Wonder how many of these little gems are in stock not selling?

http://www.weeklystandard.com/blogs/chevy-volt-still-not-selling_581956.htm

Another thing, gold has gone up $50/oz since Monday!
L

letget on August 3, 2011 at 11:01 AM

This is pathetic. Who’s buying the bus? What will be written on it? This man is absolutely unbelievable. Watch nobody show up for these campaign stops.

Key West Reader on August 3, 2011 at 11:02 AM

It’s all part of Barry’s Rovian plan to run as Reagan in 2012. Instigate a crushing recession in the last two quarters then run on the V shaped recovery back to 9% unemployment just before the election.

deadman on August 3, 2011 at 10:58 AM

Yeah, only problem is Barry forgot about the upward part of the V. So instead he’ll be stuck running on a \ shaped economy.

Doughboy on August 3, 2011 at 11:02 AM

John Deaux on August 3, 2011 at 10:55 AM

I was thinking the same thing.

milwife88 on August 3, 2011 at 11:02 AM

there’s not going to be any good news until after the 2012 election results are in. And that’s an iffy proposition at best.

rbj on August 3, 2011 at 11:05 AM

If you find he plans to visit YOUR company …

DON’T LET HIM !!!
REVERSE MIDAS !!!
It will mean nothing but BAD !!

What an a$$hat !!

pambi on August 3, 2011 at 11:08 AM

My prediction is positive job growth starting 1st QTR 2035…

PatriotRider on August 3, 2011 at 11:08 AM

gold up $50 bucks this week. can you say inflation?

unseen on August 3, 2011 at 11:08 AM

Thank you President Obama.

crr6 on May 1, 2011 at 10:45 PM

Del Dolemonte on August 3, 2011 at 11:11 AM

So it’ll be a short tour?

catmman on August 3, 2011 at 10:48 AM

it’ll be a short-bus tour.

VegasRick on August 3, 2011 at 11:11 AM

A bus tour? Really?
First, it smacks of copycatting Palin. Second, it’s a security nightmare that makes no sense.

John Deaux on August 3, 2011 at 10:55 AM

A security nightmare, for sure, with probably 2 or 3 helo gunships shadowing the bus, the real risk of terrorist RPGs, the closing of airspace for miles within his routes, the traffic closures on whole stretches of highway between cities, etc. Not to mention the fortune this will cost the taxpayers for this obvious campaign tour. Disgusting.

TXUS on August 3, 2011 at 11:12 AM

Either way, the US economy is going in the wrong direction, and won’t go in the right direction until investors start getting signals that risk has become better defined and is receding.

Did you hear the good news?

The president’s birthday bash / fundraiser extravaganza extraordinaire is still on.

Yay!

VibrioCocci on August 3, 2011 at 11:12 AM

The services sector dropped as well:

http://www.foxbusiness.com/markets/2011/08/03/us-service-sector-unexpectedly-slows-in-july/

Oh yeah, they did. “Unexpectedly?”

dogsoldier on August 3, 2011 at 11:12 AM

So it’ll be a short tour?

catmman on August 3, 2011 at 10:48 AM

..they said one week. I’m guessing he’ll be making this like all of those FDR/Truman whistle-stop campaign tours. It’s a clever ruse to (1) get him out of DC where the “hard POTUS work” must be done, (2) do some campaigning “amongst the people”, and (3) sock the campaigning costs to us, the U. S. taxpayer.

The War Planner on August 3, 2011 at 11:14 AM

DAX and FTSE down in the 3% range again today. DOW running for cover too. Now that is confidence in our deal-with-the-devils.

Limerick on August 3, 2011 at 11:14 AM

But Sarah Palin can’t win/

Lanceman on August 3, 2011 at 11:14 AM

Did y’all read this article that states the congressional leaders had to throw Obama and staff out of the negotiations?
Pretty funny.

http://thehill.com/homenews/house/175159-how-john-boehner-escaped-disaster

Cindy Munford on August 3, 2011 at 11:15 AM

He better not show up here in Wisconsin. He will be laughed out of the state. The numbers are proving how wrong Obama is and how right Walker is.

sammypants on August 3, 2011 at 11:15 AM

If you get word he’s coming through your town, greet him with tar, feathers, and pitchforks!

pilamaye on August 3, 2011 at 11:17 AM

This whole Presidenten’ thing is shortly going to get in the way of the fun stuff again, as the current Continuing Resolution expires in a month and we still do not have a budget in place. Paul Ryan opened fire today in his Where’s the Budget op-ed, and the noise level is going to get louder. We now know that Obama won’t govern unless he has no other option, and the expiring CR means the GOP is going to force him to submit a budget. About damn time too.

MTF on August 3, 2011 at 11:18 AM

Where will Obama be eating on the tour?

http://www.theblaze.com/stories/ohio-restaurant-closes-one-week-after-obama-mentions-it-in-speech/

No Niks on August 3, 2011 at 11:19 AM

One wonders if the WH understands that no one seems to be listening to the man any more ? How many shovels can they carry and distribute from the bus for the jobs in the Mid-West ?

Sandybourne on August 3, 2011 at 11:19 AM

So it’ll be a short tour?

catmman on August 3, 2011 at 10:48 AM

On a short bus.

NeighborhoodCatLady on August 3, 2011 at 11:19 AM

Someone needs to put together a video collection of clips with all the dates when little Bammie said “having done X, now I’m going to focus on jobs”.

slickwillie2001 on August 3, 2011 at 11:19 AM

He did this “jobs tour” before but just about every company he stopped at to give a speech ended up going out of business within 8 months.

tommyboy on August 3, 2011 at 10:54 AM

So, you’re saying he’s more like the “grim reaper of jobs” than President?

I can see that– I kind of hope he wears a black hood and carries a scythe if he’s going on this tour. More true to life.

MTF on August 3, 2011 at 11:22 AM

“having done X SQUAT, now I’m going to focus on saving my jobs”.

slickwillie2001 on August 3, 2011 at 11:19 AM

VegasRick on August 3, 2011 at 11:23 AM

Hey, Mr. President O: Instead of a bus tour, get on one of your fine Chevy Volts and just toodle down the road!!

mobydutch on August 3, 2011 at 11:25 AM

Someone needs to put together a video collection of clips with all the dates when little Bammie said “having done X, now I’m going to focus on jobs”.

slickwillie2001 on August 3, 2011 at 11:19 AM

Fox was running a montage all morning, dating back to January 2010.

Naturally Curly on August 3, 2011 at 11:29 AM

How, exactly, does the President going on a “jobs tour” create jobs?

Good Lt on August 3, 2011 at 11:30 AM

New orders number like that means mfg output will be down more than .8 percent in more than one future month. And this would tend to accelerate until confidence is restored. Not. Holding. Breath. This will be a deeper second dip. Washington, of course, is only concerned with how much it gets to spend. Meanwhile real wealth (that would be production of goods and services NOT fueled by sucking taxes from the productive) is collapsing around our ears. The UPside, if you can call it that, is that capital is fleeing Europe for the US! It’s much worse there! Tooo bad.

curved space on August 3, 2011 at 11:31 AM

The markets are plunging. Art Cashin just said that S&P just broke through a significant technical (1249) which could signal S&P down to 1120. Watch out. Today could get a little hairy.

Weight of Glory on August 3, 2011 at 10:49 AM

Thank you, President Obama.
-crr6

Good Lt on August 3, 2011 at 11:31 AM

Did y’all read this article that states the congressional leaders had to throw Obama and staff out of the negotiations?
Pretty funny.

http://thehill.com/homenews/house/175159-how-john-boehner-escaped-disaster

Cindy Munford on August 3, 2011 at 11:15 AM

Just Wow.

This part caught my eye:

Boehner last month asked the networks to televise his response to Obama’s address to the nation, a request which infuriated the White House, Republican sources said.

And the Left called Bush a Nazi.

Del Dolemonte on August 3, 2011 at 11:31 AM

Him on a bus tour looking to stimulate job growth when he hasn’t a clue on how to create jobs? What are they calling this, “The Tragical Mystery Tour.”

TXUS on August 3, 2011 at 11:32 AM

How, exactly, does the President going on a “jobs tour” create jobs?

Good Lt on August 3, 2011 at 11:30 AM

It doesn’t. I think he is going to step on his crank again, no teleprompter all the time. He is going to have another JTP moment, I can’t wait.

VegasRick on August 3, 2011 at 11:33 AM

President Barack Obama is planning a Midwest bus tour later this month that will focus on a jobs, his

burt on August 3, 2011 at 11:41 AM

We have the “stag” half of stagflation. All we need now is for Carter 2.0 to try another round of quantitative easing, & we’ll get the other half.

OhioCoastie on August 3, 2011 at 11:45 AM

we can expect stagnation and economic decline through 2012 as well the rest of the Donkey administrations, whether they end in 2012, 2016 or later.

burt on August 3, 2011 at 11:48 AM

A bus tour? Really?
First, it smacks of copycatting Palin. Second, it’s a security nightmare that makes no sense.

John Deaux on August 3, 2011 at 10:55 AM

A security nightmare, for sure, with probably 2 or 3 helo gunships shadowing the bus, the real risk of terrorist RPGs, the closing of airspace for miles within his routes, the traffic closures on whole stretches of highway between cities, etc. Not to mention the fortune this will cost the taxpayers for this obvious campaign tour. Disgusting.

TXUS on August 3, 2011 at 11:12 AM

I think it should be “buses”…plural…for decoy buses as well as His entourage. What a complete disaster in the making.

Party on Barry!

ornery_independent on August 3, 2011 at 11:49 AM

The bruising debt fight behind him for now, President Barack Obama is planning a Midwest bus tour later this month that will focus on jobs.

I kinda wish he were planning a MidEAST bus tour.

ornery_independent on August 3, 2011 at 11:50 AM

Del Dolemonte on August 3, 2011 at 11:31 AM

I think his world famous disposition is a facade. I think he proved it that Friday afternoon a couple of weeks ago. I bet behind the scenes he is a trip.

Cindy Munford on August 3, 2011 at 11:55 AM

I would like to see someone research the numbers of jobs lost at each of these businesses The One has visited.

I’d be willing to bet it proves the reverse Midas statement.

jackal40 on August 3, 2011 at 12:28 PM

I’m wondering if they’ll pin the FAIL on the Donkey at tonight’s big-birthday-boy-cash-bash-and-dash?

Key West Reader on August 3, 2011 at 12:29 PM

Obama focusing on jobs? Gee, that makes me fell better.

right2bright on August 3, 2011 at 12:34 PM

A “jobs tour”? Just how many jobs does a “jobs tour” produce? This little poseur is clueless.

It’s a campaign tour with tax payers footing the bill. And even we knuckle-dragging hoi polloi know it.

I bet behind the scenes he is a trip.

Cindy Munford on August 3, 2011 at 11:55 AM

You just know he is. You can see flashes of it in his pressers and speeches. Someone reported that during the debt ceiling negotiations, even the Dems were joking about the meetings with Øbama. They said there was no negotiating there. He didn’t let them talk. All he did was lecture and rant at them.

petefrt on August 3, 2011 at 12:38 PM

petefrt on August 3, 2011 at 12:38 PM

I am hoping that the more frustrated he gets that we will be given more glimpses. Wait until the September budget battles, this is going to be fun. I am easily entertained.

Cindy Munford on August 3, 2011 at 12:51 PM

Transportation equipment, also down two of the last three months, had the largest decrease, $4.3 billion or 8.6 percent to $45.3 billion.

Yes, but just wait until he builds those high-speed rail systems, the orders for super-freaky-deaky, high speed, green, sustainable, windmill-powerd locomotives will be pouring in!

Trafalgar on August 3, 2011 at 12:52 PM

Cindy Munford on August 3, 2011 at 12:51 PM

Me too. It wouldn’t surprise me if he lost it. As you probably know, Maha Rushie says he sees signs the crack-up is already under way.

What worries me is he probably has the “Après moi, le déluge” mentality. If he sees he’s going down, he’ll likely double down big time and take as much capitalism with him as he possibly can.

petefrt on August 3, 2011 at 12:57 PM

Me too. It wouldn’t surprise me if he lost it. As you probably know, Maha Rushie says he sees signs the crack-up is already under way.

What worries me is he probably has the “Après moi, le déluge” mentality. If he sees he’s going down, he’ll likely double down big time and take as much capitalism with him as he possibly can.

petefrt on August 3, 2011 at 12:57 PM

Yep, the man is a ticking time bomb. Who thought it was a good idea to hire a man that has never had a real job, to do the hardest full-time job in the country?

slickwillie2001 on August 3, 2011 at 1:13 PM

“…the White House called Minority Leader Nancy Pelosi (D-Calif.), telling her not to participate on a call with…”

That doesn’t sound like very grown up behavior. Plus, is it the WH calling Pelosi or her office? Imagine being the staffer who draws the short straw and has to actually talk to her. |||shudder|||

curved space on August 3, 2011 at 1:14 PM

Service sector growth slower since 2010 “unexpectedly” Reuters, the fools.

NEW YORK (Reuters) – The pace of growth in the services sector ticked down unexpectedly in July to the lowest level since February 2010 and the number of jobs created by the private sector also slowed, reports showed on Wednesday.

Schadenfreude on August 3, 2011 at 1:25 PM

Tomorrow will be job Armageddon.

Obama will start his 10th job initiative, while still caring about his own azz. Period.

Schadenfreude on August 3, 2011 at 1:26 PM

There’s no problem for Barry. He’ll stop some place, drop off 1/2 million to some sycophant’s factory in order for it to ‘go forward’.

The MSM will tout his “job creation”.

The same MSM will overlook it when the business goes under 3 months later.

It doesn’t have to be true. Barry just needs the photo op.

GarandFan on August 3, 2011 at 2:42 PM

He’s creating one job on this tour, the bus driver.

Kissmygrits on August 3, 2011 at 3:31 PM