A Report From the Economy

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


panic-button.jpg

Something called the Institute for Supply Management’s factory index “plunged” to 38.9% in October. In an email, economist Dean Baker of the Center for Economic and Policy Research tells us why this matters:

[The ISM index] is a pretty good measure of the direction of change in
output in manufacturing. The current reading indicates that manufacturing output is falling sharply. That likely means many more layoffs and plant closings. It’s pretty bad news.

The index, which used to be called the purchasing manager’s index, is now at its lowest level since September of 1982. Numbers below 50% indicate that the economy is contracting. Newly minted economics Nobel winner Paul Krugman says the latest ISM number means “We need a government of national unity to deal with the economic crisis, starting at, oh, around 8:45 PM tomorrow.”

Photo from flickr user zengrrl used under a Creative Commons license.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

payment methods

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate