Manufacturing slows in the United States
Here’s the ISM report in numbers and words.
WHAT RESPONDENTS ARE SAYING …
- "Business results (top and bottom line) continue to meet or exceed our operating plan and exceed prior year performance by double digits." (Chemical Products)
- "Business continues flat relative to prior month and is expected to remain flat. Commodities continue to be the main concern heading into 2011." (Food, Beverage & Tobacco Products)
- "Our business is softening due to seasonal considerations. Overall, our situation is much better than 2009." (Machinery)
- "Customers seem to be pulling back on orders. I suspect that they are trying to reduce their inventory for the approaching year-end." (Transportation Equipment)
"Strategic customers reducing order quantities." (Computer & Electronic Products)
What do I make of the numbers? They were certainly softer than expected but not alarmingly so. There was a bit of a giveback from the preceding month, yes. But I don’t see anything in these numbers that points to imminent recession. In my view, these numbers are a non-event consistent with a weak recovery.