This is the biggest negative for the US economy right now: The global slowdown is plainly creaming America’s manufacturers.
Latest evidence: The Empire Fed index has fallen to -10.41, with the New Orders Index falling to 014.
We’ve seen this over and over again lately. ISM Manufacturing is doing much worse than ISM Services and so forth.
The question is whether the US’ domestic strength can hold off the foreign weakness (services is much bigger than manufacturing, so it’s possible) and weather housing can overcome the foreign weakness as well.
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