German Industrial Base Still Struggling, April Factory Orders -0.4% vs +3.0% m/m Expected

Germany’s industrial powerhouse has still not recovered from the supply line crisis and then the difficulties of being so reliant on Russia for energy and the shocks that came with that. German industrial orders unexpectedly dropped by 0.4% m/m in April 2023, missing market estimates of a 3.0% rise and following an upwardly revised 10.9% fall in March. This was the second straight month of decline in industrial orders, dragged down a fall in large-scale orders. If you take out … Continue reading “German Industrial Base Still Struggling, April Factory Orders -0.4% vs +3.0% m/m Expected”

Texas Manufacturing Mood Worsens with Declining Orders and Outlook – Dallas Fed

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 29.1 in April from -23.4 prior to the lowest reading since July. The new orders index has now been in negative territory for a year and pushed down further from -9.6 to -16.1. The growth rate of orders index also fell, declining 10 points to -20.7, its lowest value since mid-2020. Perceptions of broader business conditions continued to worsen in May. The … Continue reading “Texas Manufacturing Mood Worsens with Declining Orders and Outlook – Dallas Fed”

US Two Speed Economy, Services Activity Rapid Expansion While Manufacturing Contracts – S&P

The S&P Global Flash PMI report PMI report for May 2023 underscored the strength in the US services sector versus a struggling manufacturing sector. Business activity for the services sector comprises the largest component of U.S. economic activity. The report shows the overall strength of the US economy despite the headwinds. The composite PMI index rose to 54.5 versus 53.5 last month, Services PMI rose 55.1 versus the 52.6 estimate and Manufacturing PMI flash floundered at 48.5 versus 50 expected. … Continue reading “US Two Speed Economy, Services Activity Rapid Expansion While Manufacturing Contracts – S&P”

US Manufacturing Sector Continues to Shrink, ISM PMI Sub-50.0% for Sixth Consecutive Month

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”

Dallas Fed Reports Texas Manufacturing Activity Contraction Deepens in April

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 23.4 in April from -15.7 prior to the lowest reading since July. There are bright spots however despite the company outlook worsening to -15.6 vs -13.3 prior. The new orders index did improve to -9.6 vs -14.3 prior, still it was the 11th month in a row negative. The production index, a key measure of state manufacturing conditions stayed position though down … Continue reading “Dallas Fed Reports Texas Manufacturing Activity Contraction Deepens in April”

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”

Texas Manufacturing Activity Expanded Modestly as Business Conditions Perceptions Worsen in March

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 15.7 in March, weaker than the -13.5 in February, despite a modest increase in output. The new orders index slid to -14.3 vs -13.2 prior, the 10th month in a row negative. The production index, a key measure of state manufacturing conditions, rose to +2.5 from -2.8 in February. Capacity utilization rose +2.3 vs. -4.1 prior. Perceptions of broader business conditions continued … Continue reading “Texas Manufacturing Activity Expanded Modestly as Business Conditions Perceptions Worsen 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%”