Dallas Fed Texas Manufacturing Activity Continues to Contract -22.6 vs -17.7 Prior

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 22.6 in July, indicating output slid even more from June. The improvement in the company outlook index posted a fifth consecutive negative reading but moved up to -10.8 vs -20.2 prior. The production index, a key measure of state manufacturing conditions, was largely unchanged at 3.8 still indicative of growth. Prices and wages continued to increase but at a more moderate pace.  … Continue reading “Dallas Fed Texas Manufacturing Activity Continues to Contract -22.6 vs -17.7 Prior”

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%”

Weakening Housing Activity Seeing Construction Spending Contract

May saw total construction spending fall in the U.S. 1% month-over-month in May (consensus was expecting a gain of 0.4%). The fall was more dramatic when you consider an upwardly revised 0.8% increase (from 0.2%) in April. Housing starts were down -14.4% month-over-month in May. This month the weak levels of public construction spending were not offset by private residential spending with the weakening housing starts activity. On a year-over-year basis, total construction spending was up 9.7%. May 2022 Total Construction … Continue reading “Weakening Housing Activity Seeing Construction Spending Contract”

Japanese Industrial Production Plummets to -7.2% m/m in May

Japan’s preliminary industrial production for May 2022 came in at -7.2% m/m much lower than the expected -0.3% m/m and the April reading of -1.5%. Two years ago, deep in the pandemic industrial production was -4.2% m/m. Production in the auto sector continues to suffer from a global parts supply crunch as output of cars and other motor vehicles suffer. Earlier today Toyota reported they missed its production targets for May with overall production levels through the first five months … Continue reading “Japanese Industrial Production Plummets to -7.2% m/m in May”

US Industrial Production in May Slows with Manufacturing Falling

Industrial production slowed in May with manufacturing the culprit. Total industrial production rose 0.2% month-over-month in May lower than the consensus 0.5% following an upwardly revised 1.4% increase (from 1.1%) in April. The capacity utilization rate increased to 79.0% again missing the consensus 79.3% from a downwardly revised 78.9% (from 79.0%) in April. US May Industrial Production Highlights Manufacturing output decreased 0.1% after increasing 0.8% in April. Motor vehicle assemblies increased 2.0% month-over-month to a seasonally adjusted annual rate of … Continue reading “US Industrial Production in May Slows with Manufacturing Falling”

Manufacturing ISM in May Stronger Than Expected as New Orders Rise

The May ISM Manufacturing Index came in at 56.1% over the consensus 54.9% from 55.4% in April. Of note was the Prices Index falling to 68.2% from 82.4%. May marked the 24th consecutive month of expansion in the manufacturing sector. However, this May reading was the second lowest since September 2020. Price pressures mellowed, though still elevated. Prices Index dropped to 82.2% from 84.6%. The hope is improved supply chain conditions; the question is does the Ukraine Russian war not allow … Continue reading “Manufacturing ISM in May Stronger Than Expected as New Orders Rise”

December Manufacturing ISM Prices Index Fell Sharply, Is Inflation Peaking?

The ISM Manufacturing Index for December came in at 58.7% under the consensus 60.3% and 61.1% in November. Of note was the Prices Index falling to 68.2% from 82.4%. Price pressures mellowed, are still alleviated but a sharp pullback. The assumption is improved supply chain conditions; the question is does the Omicron variant bring the gains undone, or become deflationary with demand destruction? January will be illuminating. The Prices Index 14.2-percentage point decrease month over month is big but ISM’s … Continue reading “December Manufacturing ISM Prices Index Fell Sharply, Is Inflation Peaking?”

Japanese Industrial Production Surges to Record High 7.2% m/m In November

Japan’s preliminary industrial production for November came in at 7.2% m/m much higher than the expected 4.8% m/m and the October reading of 1.8%. Two years ago, deep in the pandemic industrial production was -4.2% m/m. Production in the auto sector benefited from a global parts supply recovery, output of cars and other motor vehicles surged 43.1% for the month Japan Industrial Production for November 2021 (preliminary)  Industries that mainly contributed to the increased 1.Motor vehicles, 2.Plastic products, 3.Iron, steel … Continue reading “Japanese Industrial Production Surges to Record High 7.2% m/m In November”

European Industrial Companies See Strong Demand But Supply Chain Pressuring Revenue says Fitch

Supply chain disruptions continue to hamper Europe, diversified industrial companies with revenue crimped by semiconductor shortages and longer shipping times. Fitch Ratings sees this as a short term event with demand strong, and likely to continue