Respondents in the sample continue to report declining demand for energy equipment, the result of low oil prices, and subdued demand for exports, the result of weak global demand tied with the strength of the dollar. A drop in pre-production inventories is a key negative in the report, hinting at a weakening outlook for future business. Destocking is also underway for finished goods which are also on the decline. Production in this sample is near its weakest pace of the last 2-1/2 years. Another negative is a drop in selling prices, only the second of the last 3-1/2 years. On the positive side, both new orders and employment, though soft by recent standards, continue to expand.
Recent History Of This Indicator:
Early indications on the March factory sector have been surprisingly solid with both the Empire State and Philly Fed reports emerging from a long run of contraction. And forecasters see a rebound for the flash manufacturing PMI which is expected to rise sharply to 52.4 vs an unusually low 51.3 in the final reading for February. Comparisons with February are easy as growth in new orders was at a 3-1/2 year low and with backlogs and exports also weak. Selling prices were also at a 3-1/2 low.
Early indications on the March factory sector have been surprisingly solid with both the Empire State and Philly Fed reports emerging from a long run of contraction. And forecasters see a rebound for the flash manufacturing PMI which is expected to rise sharply to 52.4 vs an unusually low 51.3 in the final reading for February. Comparisons with February are easy as growth in new orders was at a 3-1/2 year low and with backlogs and exports also weak. Selling prices were also at a 3-1/2 low.
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