Among a number of worrsome signs on the state of the US and global economy is the Goldman Sachs Global Purchasing Managers Index (PMI).

That measure is a roll-up of individual country PMIs, as many nations have adopted the approach started in the US by the Institute for Supply Management (ISM)  many years ago.

For any PMI measure, a score over 50 indicate manufacturing expansion, under 50 contraction.

On the Goldman Global PMI, the trend is clearly down, with the measure recenly falling below the mark, as seen in the graphic below.

There has been signficant weakness is Euro Zone and UK manufacturing, and China is also suffering a manufacturing slowdown probably greater than government numbers indicate.

The US PMI has fallen for four straight months through July, but has remained above the 50 mark thus far - but barely. The July US PMI came in at just 51.2.

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