Manufacturing Slows

The Institute for Supply Management's manufacturing survey shows factory activity growth slowing:

Factory activity grew at the slowest rate in three months in March, suggesting the economy lost some momentum at the end of the first quarter as the effects of tighter fiscal policy started kicking in.

Data so far this year had shown little sign that higher taxes, and the $85 billion in across-the-board government spending cuts that took effect March 1 known as the "sequester," had weighed on economic activity.

"It suggests the economy was probably starting to slow at the end of the quarter, possibly reflecting the impact of the fiscal headwinds coming from sequestration and higher taxes," said Millan Mulraine, a senior economist at TD Securities in New York.

So not surprising.

Weak demand, nut-jobs who want to crash the economy in the house to reinforce their 2014 electoral prospects.

I would not be inclined to ramp up anything either.