Manufacturing In The US And EU At Low Point

According to the Institute for Supply Management (ISM), the index of US manufacturing is downgraded again to below 50. Meanwhile, statistics and research conducted by Markit also indicated that PMI of the Euro zone has been declining for almost 16 months.

The ISM said that the November index declined from 51.7 to 49.5, lower than that expected by experts, as the resistant level is 50. Moreover, the value of new order also declined to 50.3 and the value of manufacturing activity declined to 49.5. These are the lowest values for these three years.

The PMI of the Euro zone stays below 50. This means that the manufacturing in this area has not recovered yet but has only stop declining. The samples taken for this research includes Germany, France, Italy, Spain, Austria, Netherlands, Greeks, and Ireland. Among the eight, only Ireland escaped from declination, while the other countries do not show promising futures.

According to the situation now, the economies and manufacturing sectors of the USA and Euro zone are still weak. Even if the global economy takes an upturn, the obstacles facing the USA and Euro zone will not be removed as the fundamental issues facing them are still there. This will be the problem for the west for the next five years or even longer.