A reader sent in a link to this article in the business and investing section of todays Globe & Mail . It looks like the housing slump in the US is starting to have an effect on the manufacturing sector, which saw a downturn for the first time in three years:
Industries such as wood, paper, furniture and appliances all were flat or slipped last month, according to the Institute for Supply Management, based in Tempe, Ariz.
In a report that points to a worrisome trend for the economy and for jobs, ISM said its manufacturing index registered 49.5 in November, behind October’s reading of 51.2. The last time the sector contracted was in April 2003. A reading below 50 indicates contraction.
The construction sector is still not looking so good either:
The index was one of two troublesome economic reports Friday. The Commerce Department said construction activity in October plummeted by the largest amount since 2001, and home building fell for the seventh month in a row.
Both reports raised concerns that the economy may be in for a hard landing. Stock prices fell in early trading Friday on Wall Street.
Before anyone panics I would like to emphasize that this is happening in the US only and has nothing to do with Vancouver. We have a protective housing bubble that keeps us from being dragged down economically by our largest trading partner.
Also we have the skytrain, which is like a magical train in the sky that will whisk us far away from any worldly problems to our gold-plated condominiums where we will bathe in tubs of warm milk and receive foot massages from beautiful unemployed americans.