Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
The Manufacturing Recession That Never Ended
While headlines focus on a tight labor market and sticky services inflation, U.S. manufacturing has been contracting for 23 consecutive months. Lucas and Luna unpack why the factory sector keeps shrinking even as the broader economy grows, what it means for the Fed's rate path, and why the divergence between goods and services has become the defining puzzle of 2026. They cite the ISM Manufacturing PMI, the collapse in industrial production ex-autos, and the regional Fed surveys that show a two-speed economy. A concrete look at the quiet recession happening inside America's factory…
The skinny
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