Economic Barometer: U.S. Manufacturing Index Shows Continued Contraction

• The U.S. Manufacturing Outlook Index published by OMA Connections Partner RSM has registered its 15th consecutive month of negative values, but recovery is expected soon, experts say.
• Unlike manufacturing, services have been in and out of contraction, but mostly positive, with prices increasing for several consecutive months.
• U.S. consumers are depleting their excess savings and that could hamper the economy’s ability to achieve a soft landing, according to Federal Reserve economists.

Meanwhile, ratings agency Fitch this week downgraded the U.S. government’s long-term credit rating, but most economists say they don’t have immediate concerns. These charts give an overview of the nation’s long-term fiscal challenges. 8/3/2023