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Lackluster service-sector report shows long-term weakness ahead

The Institute for Supply Management released it’s non-manufacturing report today hit 52.1, the lowest in more than 12 months, indicating that while the service-related businesses are still growing, the growth is slowing.

In May, the Non-manufacturing index (NMI) was at 53.7. June’s NMI was markedly lower at 52.1 indicating that service-sector employers were seeing weakness in their respective industries.

While the construction industry perceived the economy to be flat from the prior month. Only entertainment and recreation saw any growth month-over-month as Americans head into the heavy summer vacation season. All other service sectors were seeing weakness building in their businesses.

Business activity for services fell off almost 4% in June while the backlog of new orders slipped into decline indicating that a turn-around isn’t likely soon.

Month NMI Month NMI
Jun 2012 52.1 Dec 2011 53.0
May 2012 53.7 Nov 2011 52.6
Apr 2012 53.5 Oct 2011 52.6
Mar 2012 56.0 Sep 2011 52.6
Feb 2012 57.3 Aug 2011 53.8
Jan 2012 56.8 Jul 2011 53.4
Average for 12 months – 54.0
High – 57.3
Low – 52.1

While the employment index of the survey showed increased hiring, the activity, inventory and backlog indices indicate that they might be hiring into a slowdown. Inventory sentiment gives more proof to that assertion as business owners feel that they have too much capacity for the current demand and while demand is weakening, capacity hasn’t matched it as of yet.

The report’s employment index may show slight improvement for the employment report due out Friday, but huge improvements should not be expected. While most analysts are projecting 90,000 new jobs in Friday’s report, it will be only a small improvement over May’s dismal jobs figures.

Summary

When looking at the June Manufacturing report and services reports together, backorders have slipped into decline and both major indices are showing their lowest numbers in more than a year. The economy is slowing and another downward revision in annual GDP for the United States should be expected.

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  1. WillofLa says:

    At the same time the EPA was shutting down the “mom and pop” oil companies, the EPA was also shutting down the thousands of oil refineries that existed all the way up through the 70′s until the EPA was given power to destroy all or as many of the refineries as they could due to crushing regulations for cleaning up what was left after the refinery was gone.

    Remember the “Super Fund”? The Super Fund was created from fines on all the oil companies to help offset the cost of cleanup of where refineries were and the ground and water that was heavily polluted from decades long operations. The significant reduction of refineries caused the price of gasoline to go up due to the glut of crude being made into gasoline. The liberals forced the major oil companies to slow refining in order to lower demand.

    I didn’t intentionally exclude that from my comment about how liberals took our mobility away from working American’s along with taking our jobs and good income from us to. See, how I said that liberals got those ploys from the Communists who were experts in overloading governments and countries economies to the point where a collapse would occur and then the Communists would sweep in and say they could fix everything if only the people would give the complete control over everything. And the Communist would put pressure on the people of that country because everyone would be out of work, out of money resources, the banks stopped loaning because they didn’t know what was going to happen next, sorta like things are now in America.

    Obama is a Communist and is operating from the Communist Manifesto not the U.S. Constitution. He is also a acolite of Saul Alinsky and is expert in employing Alinsky’s Rules For Radicals in how to overthrow the society and along with his Communist training and experience he is overthrowing the government. Our Constitutional Republic will only resist if the people don’t give up fighting.

    So you see now how the liberals use several things at once in order to overwhelm the people and the society and the governments ability to resist bad things happening to it. And it can if it’s natural causes, but is not set up to repair damage when it’s internal attacks on how our government operates. And that is why liberals use several attacks at once.

    First they attacked the family.
    Then they attacked the White race in making it believe it was guilty of why Blacks were not living like everyone else in our society because liberals accused Whites of being racist.
    Then they attacked the education system by forcing the schools to fully integrate without any regard to the serious damage doing something like that would cause if Blacks weren’t brought into the schools by testing them and finding out which ones were able to deal with the higher level of instruction.
    Then the liberals attacked our ability to make money by destroying our job sources.
    Then they attacked the economy by employing what is known as a seriously destructive economic system called “Cloward-Piven”. They were two Socialist professors in the 60′s who came up with a system of overloading the governments ability to keep up with providing social benefits to an ever growing number of people needing those benefits until the government implodes from the weight of debt on it.
    Then the liberals attacked America’s ability to access it’s energy resources by ever heavier taxation and regulations, restrictions on drilling, and restrictions from the government buying up land they have found oil and gas resources on, thus prohibiting any oil company from gaining access to that land. All that artificially drives up the price of gasoline which causes American’s to not be able to move around like they need to and that causes problems with how our society works. It also causes small business to go out of business because it can’t keep trucks delivering products because it gets more and more expensive the more products the company tries to deliver to stay ahead of the cost.

    Finally liberals are attacking our nations faith in God. Attacking our people’s religious faith and the people’s right to exercise that faith through rights enumerated in the Constitution. Liberals have given equal rights to those who oppose Christianity and Christian beliefs through giving equal rights to entities whose purpose is to destroy Christianity and remove morality in American society. Without a faith to protect our people’s contract with God this nation will not last much longer. And you wonder what contract I’m talking about, please read the “Mayflower Compact” and you will see that this nation was founded for Christian’s by Christian’s for the further developement and preservation of Christianity. Not Hindu, not Muslim, not Buddism, not any other faith but Christianity. America was the first nation ever founded and began for the promotion of one religion….Christianity. That is the foundation of our nation and it’s people. Destroy that and the whole country will collapse from sin. Those whose faith is still intact will be the only ones protected but it’s like having the only life boat from a sinking ship while everyone else drowns. It’s pitiful but neccessary.

    America is in deep trouble, but is not lost….yet. It will be up to Christian’s who love our Constitution and the purpose of this nations founding. It will take people who still have faith in God and will not be detered from the fight against evil that has our country by the throat and is choking the life out of our society and government. We can save it, but it’s not going to be easy or what others will think is right. But since we’ve all been brain washed by 50 years of liberalism and Communism it will take people who still have control over their facalties and will.

    STAND UP AND FIGHT THE EVIL. IT IS THE PURPOSE OF MAN ON EARTH TO DESTROY EVIL AS IT ATTACKS MANKIND. EVIL WILL DESTROY THIS NATION AND THE WORLD AS WE KNOW IT IF WE DON’T SUCCEED IN RIPPING THE FOUNDATION EVIL STANDS ON AND THAT IS LIBERALISM.

  2. WillofLa says:

    I have written this preamble in order to explain another thing that the liberals were doing while they were taking jobs away from the “middle class” so we wouldn’t be able to support some good candidate that we could get into office and throw out some rat that shouldn’t be there to begin with. But if we have a significant amount of money left from our pay, we can’t give as much support for a candidate, and also that’s not the primary reason we have that we did with out money. We bought stuff! We kept many companies in business by helping them to keep their inventory up so there would be plenty for more buying later on. We had clout. We had financial power. We had what’s called “buying power”. We were able to take care of not only ourselves, but we were contributing to charity and churches, and others we knew were needing help. Now we can’t do that so much, if at all.

    But when the liberals were encouraging corporations to merger in order to take jobs away from Americans and their money, and since I told you that liberals never do one thing at a time. They always hide several other things in a bill they are trying to push. And what other thing the liberals were attacking while they were attacking our jobs was they were shutting down our oil industry, and America’s ability to produce the power of oil and gas that this nation had at one time that made America the super power it once was.

    The ploy they used was to provide the major oil companie to buy out the independent producers who had medium and small oil companies. I call them the “mom and pop” oil companies. I went to high school with a bunch of kids whose families were wealthy because they owned several parsals of land that produced oil and gas. They had independent oil companies that produced several thousand barrels of oil a day. These medium and small size oil and gas companies were the reason why we were paying $.52 cents a gallon for gasoline. And the reason why is because the refineries had plenty of oil to refine into gasoline and that volume kept the price very low, even if alot of it was oil from the major oil companies as well. It was that huge extra amount provided by the mom and pop oil companies added to what the majors were producing that the liberals wanted to put a stop to once and for all.

    And the liberal Democrats began the “oil crisis” that happened in the mid 80′s, around 1985, and 1986. I worked for a large regional commuter airline as a aircraft mechanic during the 80′s. When the so called “oil crisis” happened we lost over 65% of our passengers who worked for oil and gas companies when the medium and small size oil companies were bought out by the major oil companies that the liberals gave extra power to by legislation out of Washington. Not only the major oil companies got legislative power from bills the liberal Democrats passed that allowed the major oil companies to buy out the “mom and pop” oil companies, but the big Wall Street banks and investment corporations were given power to. If a “mom and pop” oil company didn’t want to sell out to the major’s the law the liberals got passed contained destructive taxation and thousands of regualtions put upon these oil companies by the explosion of power given to the EPA by the liberals. It’ was either sell out, or be buried by taxes and EPA regulations put on them because the EPA said their oil drilling operations were polluting the ground and water and everything else around a rig, or a distribution operation including pumping. The EPA was given real teeth to destroy a “mom and pop” oil company so they sold out to the majors.

    That’s when we saw gasoline go from $.85 cents a gallon to $1.50 a gallon, and then it crossed $2.00 a gallon. It was because the major’s had ownership of all the oil and gas in the country now and the load of demand was creating a “shortage” from time to time. That would keep the price up from high demand, which wasn’t “high” because it was just as much as it was before the oil crisis of the 80′s, but now the demand couldn’t be kept up with and the price would be put higher in order to force the demand down. This is manipulation of the demand. That’s how the left got control of our natural resources.

  3. WillofLa says:

    One thing that you have to understand is that liberals never do ONE thing at a time. Communist advise liberals on what to do because they are the experts in how to destroy countries. And liberals always have four or five things going on at one time. That way when people who oppose some bill that liberals are trying to make it look like that it’s the only thing they are trying to pass, find out real fast that when they try to defeat that bill the liberals have more than enough supporters and activists to go up against any opposition to any bill. And the other thing that is found out when any opposition to a liberal Democrat bill is put into action is, that’s not the only thing in the bill that there is to oppose, there’s four of five other things the liberals have hidden inside that bill that will do real damage to our country if that bill becomes law. So the opposers have to come up with other groups to attack those other parts of the liberal Democrat bill that are hidden. When that happens it divides up the opposition and when that happens it is easier for the left to defeat the opposers to the bill.

    It’s like the military saying in “Divide and Conquer”. You fake a move in order to get your enemy to divide up his forces to go after the main attack. But when that happens the ploy is to get the enemy to do that because the main attack is not what it seemed to be. The main attack then splits up and overwhelmes the enemies smaller groups that have been split off in order to attack what the enemy thought was the main attack. That way the enemy can concentrate more forces to defeat and destroy the smaller elements. Divide and Conquer.

    Liberals do that all the time. That’s why they have worked so hard to form all these NGO’s and “grass roots” groups in every state in order to go up against state opposition to some bill like ObamaCare that will put huge financial support that every starte will have to come up with to pay for ObamaCare once the initial money from the government runs out. And also the liberals have got the TV media to put out disinformation and misinformation, lies, and false information about any bill the liberals are trying to ram down our throats. That way they are more than able to defeat opposition to some crap they are pushing onto us.

    Remember those things and you will see what the liberals are trying to do. They never have just one thing they are trying to do to us. They have four or five other things that are hidden that will also take place if a bill becomes law. Just like Nancy Pelosi said, “We need to pass this bill so we can find out what is in it.” And there you go.

  4. WillofLa says:

    Most all the time I make comments with history included, as much as space allows without getting to terribly lengthy. And this situation requires some historic background in order for people to understand how things got so bad.

    Back in the 80′s, liberal Democrats, i.e. Socialists, decided that since they had began the plot to destroy the nuclear family with women’s lib, their next plan was to remove the single thing that gave the “middle class” it’s power over most political efforts to change America, and that was to take their money away from them. It’s been the making of money by the “middle class” that has given it the ability to contribute to candidates and get who they wanted into office and elect Presidents, specifically Reagan, and conservatives to the Houses. Liberals knew what they needed to do in order to kill the power of the “middle class” and that is to get the industries and manufactoring to move out of the US taking millions of good paying jobs with them. Wall Street was part of that plan and what the left came up with was a two fold plan that involved “hostile takeovers”, “buy outs”, “mergers” and other financial entities like that that everytime a major corporation took over some other corporation, the buying corporation laid off tens of thousands of people, shut down the smaller corporations and companies within that bought corporation, and then move on to the next.

    The liberal Democrats passed one banking law after another, one trade bill after another, and that includes NAFTA and bills like that with a penalty that if some corporation or group of companies didn’t want to comply with the law the liberal Democrats put a bunch of taxes and regulations in the bill that forced alot of those companies to move out of the US in order to avoid having to pay the taxes and adhere to all the regs.. This took place every time a merger took place other than the layoffs and close downs of small companies whose parent corporation was the one who got bought. In order to stay in business and not have to go out of business due to passing on debt to the new owner of the parent corporation, the company just moved to Mexico or Canada, or even outside of North America. But when they did that they could still stay in business, but the American’s who were working for that company all lost their jobs and never got jobs that well paying again. This is how the left took the clout of being able to build person wealth that Americans had when they all had good jobs.

    Reagan couldn’t do anything about any of this because it wasn’t against the law, and he wasn’t going to stick his nose in the business goings on of a private corporation or company. So long as they adhered to the trust and trade laws he had to let it happen even though he saw all the hundreds to thousands of American’s being systematically being put out of work permanently, losing everything they had worked so hard to have. It was a terrible thing to have to see.

    But it’s what the liberal Democrats, Socialists/Communists, knew they had to do in order to transform America from a manufacturing/industrial based economy, into a, service based economy. And you know as well as I do that there is no way that America could survive economically on only service jobs. America has to have all the legs of the table in order to remain the strong nation it was, and that is through it’s manufacturing and industrial might, second to none. Of course the liberals only see American workers as those in UNIONS. Unions cannot make up for all the hundreds of thousands of different kinds of companies making all the thousands of different kinds of products America did make at one time that were not union. NAFTA affected both union and non union jobs as those were lost to Mexico and Canada, and the liberal Republican’s and Socialist Democrats cooked up NAFTA knowing full well what would happen when that bill became law. It was said that a huge sucking noise would be heard when NAFTA was passed and that would be all the jobs leaving America. The proponents of the bill denied that anything like that would happen and became very defensive when anyone said that NAFTA would wipe out thousands of good paying manufacturing and industrial jobs. Well it did happen and now America is trying to survive on the service jobs that were left when the manufacturing jobs they serviced left the country. And there is no way in hell that that will hold up a country that before needed both the manufacturing and it’s service jobs that once paid American’s the money they would use to shape the politics they wanted for their country.

    Now that’s gone. And the only way it came even make a slight comeback is for young people to start those industries over again, non union, and try to undermine those companies who are making that stuff, and make contracts to supply the things that were once made here exclusively. That is the only way to remake those jobs again, but there is one question and that is, will we be able to find young people who will want to do that kind of work? These young people these days are soft and lazy from being on the computer to much. Will they want to pick up a sledge hammer and swing that thing all day again?