The ISM Manufacturing Index edged higher to 47.1 in April of 2023 from 46.3 in March, as it trys to recover from the lowest since May 2020. The report reflects a general contraction in manufacturing activity and marks the sixth straight month with a sub-50.0% reading. The result was consistent with the regional Chicago PMI’s seventh consecutive month of contraction in business activity in the Chicago region. Clearly the cumulative effect of rate hikes around the globe is adversely impacting … Continue reading “US Manufacturing Sector Continues to Shrink, ISM PMI Sub-50.0% for Sixth Consecutive Month”
U.S. Manufacturing Contraction Deepens, ISM PMI Approaches Pandemic Levels in March
The March ISM Manufacturing Index decreased to 46.3% (consensus 47.5%) from 47.7% in February, the lowest reading since May 2020. The index contracted for the fifth straight month under 50%. Manufacturing activity at 46.3% the ISM corresponds to a change of -0.9% in real GDP on an annualized basis. The result was consistent with the regional Chicago PMI’s seventh consecutive month of contraction in business activity in the Chicago region. Clearly the cumulative effect of rate hikes around the globe … Continue reading “U.S. Manufacturing Contraction Deepens, ISM PMI Approaches Pandemic Levels in March”
Chicago Economic Activity Contracts for Seventh Straight Month in March
The Chicago Business Barometer or Chicago PMI eked out a gain to 43.8 in March of 2023 from 43.6 in January. High interest rates and inflation continue to drag down the US manufacturing sector. Figures came in higher than market forecasts of consensus 42.5, pointing to some balancing of economic activity in the Chicago region, which extended for a seventh straight month below the 50 threshold indicates economic contraction. The Chicago PMI is the last of the regional manufacturing indices … Continue reading “Chicago Economic Activity Contracts for Seventh Straight Month in March”
American Factory Orders Fell in January but Shipments of Manufactured Goods Rebounded
US factory orders for manufactured goods fell 1.6% month-over-month in January (consensus -1.8%) following a downwardly revised 1.7% increase (from 1.8%) in December. Shipments of manufactured goods increased 0.7% month-over-month after declining 0.6% in December. The US has seen a quick rebound in business spending, highlighted by the sizable jump in shipments of nondefense capital goods excluding aircraft were up 1.1% after declining 0.6% in December. This will add favorably to GDP forecasts. US Factory Orders February 2023 Factory orders … Continue reading “American Factory Orders Fell in January but Shipments of Manufactured Goods Rebounded”
February ISM Manufacturing PMI 47.7, Fourth Straight Month Sub-50.0%
The ISM Manufacturing Index edged higher to 47.7 in February of 2023 from 47.4 in January, which was the lowest since May 2020. The report reflects a general contraction in manufacturing activity and marks the fourth straight month with a sub-50.0% reading. The result was consistent with the regional Chicago PMI’s sixth consecutive month of contraction in business activity in the Chicago region. Clearly the cumulative effect of rate hikes around the globe is adversely impacting demand, evidenced by the … Continue reading “February ISM Manufacturing PMI 47.7, Fourth Straight Month Sub-50.0%”
Chicago Economic Activity Contracts Further ISM PMI Shows in February
High interest rates and inflation continue to drag down the US manufacturing sector. The Chicago Business Barometer or Chicago PMI fell for a second consecutive month to 43.6 in February of 2023 from 44.3 in January. Figures came in lower than market forecasts of 45, pointing to another contraction in economic activity in the Chicago region, which extended for a sixth straight month. Below the 50 threshold indicates economic contraction. The Chicago PMI is the last of the regional manufacturing … Continue reading “Chicago Economic Activity Contracts Further ISM PMI Shows in February”
January ISM Manufacturing PMI Lowest Since May 2020, Third Straight Month Sub-50.0%
The January ISM Manufacturing Index dropped to 47.4% (consensus 48.0%) from 48.4% in December, reflecting a general contraction in manufacturing activity. The ISM hit its lowest level since May 2020 and marks the third straight month with a sub-50.0% reading. The result was consistent with the regional Chicago PMI’s fifth consecutive month of contraction in business activity in the Chicago region. Clearly the cumulative effect of rate hikes around the globe is adversely impacting demand, evidenced by the fifth straight … Continue reading “January ISM Manufacturing PMI Lowest Since May 2020, Third Straight Month Sub-50.0%”
US PMI Reflects Hesitancy to Expand Capacity in Uncertain Conditions in 2023
The S&P Global US Manufacturing PMI rose to 46.8 in January of 2023 from 46.2 in December, better than expected but well below contraction pivot of 50. Factory activity continues to be hit by supply constraints and rampant inflation. S&P Global. reported private sector firms in the US registered a further decline in output at the start of 2023, according to their latest ‘flash’ PMI™ with the fall in business activity softened to the slowest in three months. The economy … Continue reading “US PMI Reflects Hesitancy to Expand Capacity in Uncertain Conditions in 2023”
December ISM Manufacturing PMI Lowest Since May 2020, Second Straight Month Sub-50.0%
The December ISM Manufacturing Index dropped to 48.4% (consensus 48.5%) from 49.0% in November, reflecting a general contraction in manufacturing activity. The ISM hit its lowest level since May 2020 and marks the second straight month with a sub-50.0% reading. The result was consistent with the regional Chicago PMI’s fourth consecutive month of contraction in business activity in the Chicago region. Though it increased to 44.9 points in December the weakness is deep, recovering slightly from a 30-month low of … Continue reading “December ISM Manufacturing PMI Lowest Since May 2020, Second Straight Month Sub-50.0%”
American Factory Orders Rise in October with Rebounding Business Spending
US factory orders for manufactured goods rose 1.0% month-over-month in October higher than the consensus 0.7% and following an unrevised 0.3% increase in September. Shipments of manufactured goods jumped 0.7% after increasing 0.3% in September. The US has seen a quick rebound in business spending, highlighted by the 0.6% increase in nondefense capital goods orders excluding aircraft, and the sizable jump in shipments of nondefense capital goods excluding aircraft (+1.5%) that will add favorably to Q4 GDP forecasts. US Factory … Continue reading “American Factory Orders Rise in October with Rebounding Business Spending”