to a new survey by the Institute for Supply Management
(ISM) US manufacturing has weakened sharply pointing to
mounting evidence of the world's largest economy slowing
ISM survey has pointed out to the national decline in
factory productivity in November 2006 to its lowest level
in more than three years since April 2003. That was around
the time that the first strains in manufacturing were
detected in the in the Midwest.
the value of the dollar against other currencies has been
declining steadily, with fears of a slowdown pushing it
to a 14-month low against sterling. The dollar is expected
to continue to decline against European currencies if
the economic indicators continue to point downwards.
interest rates have been rising across Europe, analysts
feel that the recent economic indicators now point out
to the possibility of the FED now reversing its policy
to now usher in an interest rate cut to usher in a period
of an easier monetary policy.
it has issued frequent warnings about persistent inflationary
pressures, the Fed has kept interest rates intact for
months. Though the ISM's figures are significant, Fed
chief Ben Bernanke may move in to introduce a cut only
in the event of further evidence of a downturn.