New orders had been flat going into year end but, based on strength in domestic demand, are strengthening this month, this despite flat results for export sales where respondents continue to link troubles to the strong dollar. Cutbacks in the oil & gas sector are also hurting orders. Backlogs, which had been contracting sharply, are stabilizing.
Production is accelerating for the first time in three months though job creation is slowing to a 4-month low. In a sign of caution, the sample continues to keep inventories low. Costs for inputs are down while price traction for finished goods remains no more than marginal. This report underscores the strengths of yesterday's Philly Fed report where rates of contraction are noticeably slowing, and it contrasts with the Empire State report where January's contraction deepened sharply.
Recent History Of This Indicator:
The manufacturing PMI, which had been posting much stronger levels of activity than other manufacturing reports, slowed sharply in November and December. And not much is expected for the January flash with the Econoday consensus calling for a 2 tenths dip from final December to 51.0. New orders have been in near stagnation in this report with backlogs contracting sharply.
The manufacturing PMI, which had been posting much stronger levels of activity than other manufacturing reports, slowed sharply in November and December. And not much is expected for the January flash with the Econoday consensus calling for a 2 tenths dip from final December to 51.0. New orders have been in near stagnation in this report with backlogs contracting sharply.
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