HOW LOW CAN IT GO?

China first now the United States?! Today the U.S. manufacturing sector has shrunk to an all-time low for the second month in a row. America’s economy's is influenced by other countries such as China. Over time the Chinese economy has rapidly began to dwindle slower than what the government would want and it seems as if the United States is not that far behind. In December the key index hit 48.2% which is the lowest it has been since June 2009. Once the key index hits anything lower than 50% it is considered a contraction. Many economists have become even more concerned at the news because a private sector on Monday showed that China’s factory sector has dwindled even more. Not only did China's factory sector dwindle but so did the DOW. The DOW fell 400 points a new low after the news of how low the ISM was. With the DOW falling it is clear that there is much work that needs to be done.

With this news many economists are becoming concerned and it is starting to affect businesses and factories. The factories are being affected because of the shutdown in China stopping trade and many other important things. Also the value of the American dollar is making it more difficult for foreign buyers to purchase certain products. The manufacturing in China has fallen within the last 77 months which is not good at all. With this news it is clear that China isn't receiving enough imports or that there isn't enough people to help get jobs done. With China's manufacturing fallen within the past couple of years it begins to slow down the process in other counties such as the United Stated and other countries that depend on this country. Manufacturing companies are really feeling the pain with this news. Manufacturing was rated one of the worst performing sectors in the economy. Manufacturing added new jobs towards the end of last year but slowly began to lose workers at the same time. If the manufacturing business begins to dwindle the U.S. economy is going to suffer even more which is not going to be great in the upcoming year.

With the new year starting I think that's it's really scary for the economy to be this bad. There needs to be something done and fast because if not I'm not sure what's going to happen with the economy. If we aren't able to get products from this country, it's just going to continue to dwindle the manufacturing companies that we have now. I feel that there will be a solution to this problem and we as Americans can only hope for the best.

Source:

http://money.cnn.com/2016/01/04/news/economy/us-manufacturing-shrinks-again/index.html?iid=hp-stack-dom