All articles tagged with #contraction
The December 2025 ISM Manufacturing PMI fell slightly to 47.9%, indicating continued contraction in the U.S. manufacturing sector for the 10th consecutive month, with mixed signals such as slower employment and inventories but some positive signs in new orders and export activity. Overall, the manufacturing economy remains weak, influenced by tariffs, geopolitical issues, and demand uncertainties.
Japan's GDP shrank for the second consecutive quarter, causing the country to fall to fourth place in the global economic rankings. The 0.4% annualized contraction was unexpected and lower than economists' forecasts, following a 3.3% contraction in the previous quarter. However, analysts suggest that the overall economic situation may not be as dire as the GDP data indicates, pointing to positive readings from other economic indicators.
Japan's economy has contracted as weak consumption undermines its recovery, with the country's GDP shrinking by an annualized rate of 5.1% in the first quarter of 2021. The decline in consumer spending, which accounts for more than half of Japan's economy, is attributed to the ongoing impact of the COVID-19 pandemic and the government's efforts to contain the virus. This setback poses a challenge to Prime Minister Yoshihide Suga's goal of achieving a strong economic rebound ahead of the Tokyo Olympics.
The manufacturing sector in the United States contracted for the 12th consecutive month in October, with the Manufacturing PMI registering at 46.7%. New orders, employment, and backlog of orders all contracted at a faster rate, while production expanded at a slower pace. Supplier deliveries improved, but raw materials inventories continued to contract. Prices decreased, and both exports and imports contracted. Only the food, beverage, and tobacco products industry reported growth, while the majority of manufacturing industries experienced contraction.
A new study suggests that Mercury is still cooling down, leading to tectonic activity on the planet's surface. Vertical faults called "graben" have been identified on Mercury, indicating recent contraction due to cooling. These graben are widespread and suggest ongoing tectonic activity. The cooling process on Mercury can lead to the loss of liquid cores, magnetic fields, and volcanic activity. The study estimates that most of the graben are less than 200 million years old, indicating that the cooling of Mercury is still occurring.
Chinese manufacturing contracted for the fifth consecutive month in August, indicating ongoing weakness in the sector and raising concerns about the state of the global economy.
Gold prices dropped to session lows as the Institute for Supply Management (ISM) manufacturing index revealed that the U.S. manufacturing sector contracted for the ninth consecutive month. The index came in at 46.4% for July, below market expectations of 46.9%. The employment index also fell further into contraction, while the index for new orders remained in contraction territory. Despite a slight uptick in the PMI, the reading reflects companies continuing to manage outputs down as order softness persists.
Texas factory activity contracted in July, with the production index indicating a modest decline in output. Other measures of manufacturing activity also showed contraction, including new orders, capacity utilization, and shipments. However, there were signs of improvement in the labor market, with faster growth in employment and longer workweeks. Price pressures increased but remained subdued, while wage growth moderated. Expectations for future manufacturing activity improved, with the future production index remaining positive and the future general business activity index entering positive territory for the first time in over a year.