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”

US Manufacturing Has First Contraction Since Pandemic in November, S&P Global PMI Shows

The S&P Global US Manufacturing PMI fell to 47.6 in November of 2022 from 50.4 in October, well below forecasts of 50. This was the lowest growth in factory activity and the first contraction in factory activity since the pandemic hit in mid-2020, hit by supply constraints and rampant inflation. The economy has been hit by stifled demand conditions and production cutbacks. There was a renewed fall in output and a sharper decline in new orders. There was some positive … Continue reading “US Manufacturing Has First Contraction Since Pandemic in November, S&P Global PMI Shows”

US Service Activity Decline Accelerates while Manufacturing Output Rises in October

The latest S&P Global flash PMI data shows private sector firms in the US recorded a further downturnin output at the start of the fourth quarter. The headline Flash US PMI Composite Output Indexwas 47.3 in October, down from 49.5 in September. With the exception of the initial pandemic period, the rate of decrease was the second-fastest since 2009. The fall in business activity was stronger than in September, as service providers signaled a quicker decline. Manufacturers, on the other … Continue reading “US Service Activity Decline Accelerates while Manufacturing Output Rises in October”

US Services and Manufacturing Output in September Falls at Softer Pace

The S&P Global Flash US Services Business Activity Index posted 49.2 in September, up sharply from 43.7 August to signal a much slower decline in output. The fall in business activity the softest for three months as a pickup in new orders and client demand dampened the contraction. S&P Global flash US Manufacturing PMI rose to 51.8 in September of 2022 from 51.5 in August, above consensus forecasts of 51. This remains just above the lowest growth in factory activity … Continue reading “US Services and Manufacturing Output in September Falls at Softer Pace”

US Manufacturing ISM Steady in August as Prices Softened Again 

The August ISM Manufacturing Index came in at 52.8% above the consensus 52.0% and unchanged from July, and near to 53 in June. These low levels of factory growth have not been seen since June 2020. New orders returned to expansion at 51.3 from 48. Prices softened again to 52.5 vs 60, reflecting movement toward supply and demand balance. August marked the 27th consecutive month of expansion in the manufacturing sector. The hope is improved supply chain conditions; the question is … Continue reading “US Manufacturing ISM Steady in August as Prices Softened Again “

US Manufacturing PMI in August Weaker Than Expected as New Export Orders Fell Solidly

The S&P Global flash US Manufacturing PMI fell to 51.3 in August of 2022 from 52.2 in July, below consensus forecasts of 52. This was the lowest growth in factory activity since July of 2020, hit by supply constraints and rampant inflation. The economy has been hit by stifled demand conditions and production cutbacks. Output contracted for the second successive month. New export orders fell solidly as inflationary pressures in key export markets weighed on demand. The surging US dollar … Continue reading “US Manufacturing PMI in August Weaker Than Expected as New Export Orders Fell Solidly”

Manufacturing ISM in June Weaker Than Expected as New Orders Contract Below 50%

The June ISM Manufacturing Index came in at 53.0% below the consensus 55.0% and from 56.1% in May. The clear slowdown in manufacturing activity is evident, highlighted by the first contraction in new order activity in 25 months. The New Orders Index fell to 49.2% from 55.1%. June marked the 25th consecutive month of expansion in the manufacturing sector. However, this June reading was the lowest since June 2020. Price pressures mellowed, though still elevated. Prices Index dropped to 78.5% from … Continue reading “Manufacturing ISM in June Weaker Than Expected as New Orders Contract Below 50%”