This report points to continued dismal economic growth extending into the July-September quarter, and blunts the idea that the economy would improve this year.
"The ISM manufacturing report for July is a shocker and strongly suggests that the disappointing performance of the economy in the first half of the year was not just temporary," said Paul Dales, senior U.S. economist.
The economy expanded at a dismal 1.3% annual rate in the April-June period after an even worse 0.4% increase in the first three months of the year. The jobless rate rose to 9.2% again.
The Debt Deal is a standoff. It just beats the default deadline, the House passing it by a wide margin today, but the effect is a neutral debt ceiling hike - $2.1 Trillion in new debt and offset spending cuts.
The upcoming 2012 election is a clear demarcation for the economy, and the ultimate survival of the nation. Obama and the Democrats have proven they are willing to spend to the last man standing with current year deficit a record $1.7 Trillion. The GOP is unable to fully implement country saving spending cuts, and balance budgets with only one-third of the government under their control.
Related:
Personal income stalls; spending drops, first decline since '09...
