Will This Time Be Different? Manufacturing Sector Is Flashing Red

Feb 01, 2016

The downturn in manufacturing is becoming harder for investors to ignore and their concern may intensify with data due to be released on Monday.

Manufacturing, a central — if shrinking – component of the U.S. economy, has been showing signs of weakness over the past year. A strengthening dollar and tumbling commodity prices have hit U.S. factories hard, reducing demand for manufactured goods.

The question for investors is whether or not the sector, historically a bellwether for the economy, is a sign of a broader contraction.

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