United States economy: almost of manufacturing jobs as the decline in orders

August 01, 2011, 4: 42 PM EDT by Alex Kowalski

(Updates with closure of markets in sixth paragraph.)

August 1 (Bloomberg) - manufacturing in the United States almost stalled in July, threatening to deprive the recovery of two years of one of its main instigators.The Institute for Supply Management's factory Index plummeted to 50.9, the lowest since July 2009, from 55.3 a month earlier, the group based in Tempe, Arizona, said today. Figures less than 50 signal contraction and the index is less than the forecast more pessimistic in a survey of Bloomberg News in July.Stocks fell and treasuries met as orders shrank for the first time since June, 2009, indicated the production and economic growth may be limited. "Other reports today indicate a global slowdown that reduced measures of the factory in Asia to Europe."Companies have cut back on orders and jobs because they are not seeing the demand expected, said John Silvia, Chief Economist at Wells Fargo Securities LLC in Charlotte, North Carolina." "The economy not be picking momentum in the second half".The median of forecasts in the survey of 80 economists Bloomberg requested a decrease 54.5. The estimates ranged from 51 populations of 56. They erased an early rally caused by speculation, U.S. lawmakers vote in favor of a plan to raise the debt ceiling. The rate of 500 from Standard & poor's declined 0.4% to 1,286.94 at 4 p.m. for closing in New York. Treasury bonds rose, pushing down the performance of the note of 10 years of reference to 2.75 per cent of 2.80 per cent on July 29. Asia EuropeU.K manufacture of Russian and Australian fell, while it decreased the rate of growth of the factory in Europe and China, according to other surveys today.United States ISM report showed new orders measure fell to 49.2 in July of 51.6, while awaiting cover orders were the lowest since April 2009. The extent of the production in July dropped to the level lowest since June 2009, while the contract inventories.An indicator of factory employment refused to the lowest since December of 2009, whereas a measure of exports increased.Americans are reducing purchases in response to the slow job creation and higher fuel costs. The economy expanded at an annual rate of 1.3 per cent in the second quarter, lower than the forecast, the Commerce Department figures showed last week. Household spending rose 0.1 percent weaker rhythm from the second quarter of 2009.Federal ReserveGrowth cooled in eight of the 12 regions of the Federal Reserve, the central bank said last week in its Beige Book survey. Many regions said manufacturing has decreased or remained stable, according to the report, covering June and the first half of the charge of July.Fed, including Chairman Ben S. Bernanke said they anticipate that it will strengthen the economy in the second half of 2011 as "factors which may be temporary" calm down.A report from the Commerce Department today showed construction spending increased a third consecutive month in June, led by a gain in the building. The 0.2% increase after a gain of 0.3 percent revised that previously reported a decrease.Dow Chemical Co. "Executive director Andrew Liveris said that his company saw"continuous growth to gain strength in developed markets, although to a somewhat uneven pace and staggered given persistently high unemployment rate in United States and the concerns of sovereign debt in Europe"."In emerging geographies growing despite some inflationary pressures, the rapid expansion of the middle class remains strong underlying fundamentals, the unit "Liveris said in a statement on 27 July."Manufacturers should rely more on overseas, which is being driven by a weak dollar demand.Dow, the largest U.S. chemical maker, reported earnings for second quarter higher than the estimates of analysts, led by increases in basic and plastics chemicals.

-With the assistance of Chris Middleton and Shobhana Chandra in Washington. Editors: Vince Golle, Carlos Torres

To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz in cwellisz@bloomberg.net

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