Here Come the Stats. The Institute of Supply Management PMI is now at 36.2. That is the lowest number since 1980, when it was 24.2.
PMI is a manufacturing index with nine components: New Orders, Production, Employment, Supplier Deliveries, Inventories, Prices, New Export Orders, Imports, and Backlogs.
This is a 2.7 point drop from October and new orders and inventory build up seem to be the main cause.
NOT GOOD FOLKS!
The number also came in lower than economists estimated.
Construction Spending also dropped 1.2%, also larger than forecast.
The big news here is commercial building, infrastructure building slowed, so the residential real estate crisis has flowed into commercial construction.