The January 2015 Institute for Supply Management Report on Business was released on Monday:
“Economic activity in the manufacturing sector expanded in January for the 20th consecutive month and the overall economy grew for the 68th consecutive month“, say the nation’s executives in the latest report.
The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
The January PMI registered 53.5 percent (a PMI in excess of 43.1 percent, over a period of time, generally indicates expansion of the overall economy), a decrease of 1.6 percentage points from December’s seasonally adjusted reading of 55.1 percent ( a reading above 50 indicates that the manufacturing economy is generally expanding, below 50 percent indicates that it is generally contracting). The New Orders Index decreased 4.9 percentage points, the Production Index dropped 1.2 percentage points from December’s reading, and the Employment Index dropped 1.9 percentage points. Inventories of raw materials increased 5.5 percentage points.”
The take: the overall economy continues to grow but at a slower rate in January and the manufacturing sector of the economy also continues to grow, also at a slower rate than in December.
US Raw Steel Production
US raw steel production dropped 2.4 percent last week from the previous week as mills operated at an average capability utilization rate (ACUR) of 75.4 percent. In the corresponding week last year mills operated at an ACUR of 75.8 percent. Thus far this year mills have operated at an ACUR of 77.4 percent compared to the 75.8 percent ACUR in the like period last year.
Ferrous scrap prices in Detroit dropped to five-year lows this week as an oversupplied industrial scrap market opened the door for steel mills to dramatically lower monthly prices.
Mills in the Detroit region stepped into the market 2/4 with bids that sent prime scrap down $100 per gross ton from January levels and obsolete and shredded scrap down around $80 per ton.
Market participants said there was little resistance from dealers given the prevailing gloomy sentiment in the market.
A buyer for one steel producer attributes the price cull to oversupply.
In a nutshell, a lack of demand and too much supply sent prices down. In particular, the flat rolled mill cutbacks have left a lot of prime scrap overhanging the market.”
The US added 257,000 jobs in January, unemployment kicks up to 5.7% (the REAL number is 11.3%)
According to a video released Saturday ISIS has beheaded the second of two Japanese citizens they had been holding hostage. Their initial demands for $200 million in ransom were not met; the first of the two was beheaded last weekend, then a demand for release of a female suicide bomber in exchange for the other Japanese citizen. This demand also was not met, hence the second beheading. This has become ridiculous…all around the world the Islamic jihadists are murdering their own people, their own children, Jews, Christians and anyone else who does not happen to agree with their views….and no one has yet put forth a cohesive strategy to defeat this enemy.
According to a video released on Tuesday, ISIS has killed, by burning alive, a Jordanian pilot who had ejected over Syria in December and was subsequently taken hostage by the terrorist group…and the beat goes on. What needs to be done? A coalition of countries coming together militarily to wipe these rats out, boom, off the face of the earth, go get them wherever they are, and I mean men, women and children, for if you leave one alive…they will return.
So, how did Jordan respond to the cruel death of one of their own? They immediately hung two imprisoned ISIS terrorists by the neck until dead. Good for them! Additionally they have mobilized their fleet of F-16’s and have been bombing ISIS positions in Syria and Iraq….go get ‘em! In the meantime, here in la-la-land, our president keeps letting known terrorists held in Gitmo go free ( so he can fulfill a campaign promise-right or wrong), and he and the people in his administration STILL refuse to label the terrorists what they are. Go figure…
Fast & Furious-providing weapons to criminals leading to a loss of American life. No one held accountable. The president was unaware.
The loss of 4 American lives at our embassy in Benghazi, Libya. No one held accountable. The president was unaware.
The IRS targeting conservative political groups for tax-exempt status. No one held accountable. The president was unaware.
The National Security Administration eavesdropping on the phone calls of American citizens. No one held accountable. The president was unaware.
The software program created for the Affordable Healthcare Act, at a cost of $1 billion (thus far) and 3 ½ years to “perfect”, has been unusable to the American people. No one held accountable. The president was unaware.
Spying on our Allies, specifically Angela Merkel of Germany. No one held accountable. The president was unaware. (Although these things go on knowingly between countries all the time, the fact that our president denies knowledge of this is just another sign of his incompetence as the leader of the most powerful country on the planet).
“If you like your current insurance plan you can keep it. Period” Barack Obama
“If you like your doctor, you can keep him. Period” Barack Obama
Have a great weekend
Hug your children and grandchildren, tell them you love them.
Buy American made products whenever you can.
Hire a Veteran: they are patriots, honest, hard working, disciplined, loyal…. and …. They need and deserve our support.
God Bless America