Wow, what a terrible number. On the back of the Q1 revision of GDP, and poor Q2 GDP - along with deteriorating unemployment data, one wonders if the economists are going to look back at this period and say we are back in recession. (not the 'technical recession' of two quarters of 'official GDP' being negative)
ISM Manufacturing tumbled to 50.9 from 55.3, and versus the 54.3 expectation. 50 is the line between expansion and contraction.
New orders came in below 50 at 49.2; first contraction since June 2009.
Employment dumped from 59.9 to 53.5.
Once more prices paid dropped dramatically but its a steep price to pay for lower inflation.
The market turned the premarket surge into a selloff.
WHAT RESPONDENTS ARE SAYING ...
- Inflation pressures have finally slowed down. (Chemical Products)
- With products sold internationally, the business conditions we are currently experiencing are declining from abnormally [high] record-breaking levels. Business conditions are currently flattening to more normal volumes, while trending slightly downward. (Machinery)
- Market conditions — Europe weak, U.S. soft, Asia strong. (Computer & Electronic Products)
- Demand from automotive manufacturers continues to improve. (Fabricated Metal Products)
- Export sales very strong, while domestic sales are sluggish. (Paper Products)
- The looming debt ceiling has government agencies backing away from spending. Forecasting a slowdown in demand in the short term. (Transportation Equipment)
- Generally seeing a slowdown, which is typical this time of year. Hopeful that this is seasonal only. (Plastics & Rubber Products)
- Most industrial customers seem to be sustaining their business. Export orders continue to remain strong. Price pressures persist, especially with commodity materials. (Chemical Products)
MANUFACTURING AT A GLANCE
PMI 50.9 55.3 -4.4 Growing Slower 24
New Orders 49.2 51.6 -2.4 Contracting From Growing 1
Production 52.3 54.5 -2.2 Growing Slower 26
Employment 53.5 59.9 -6.4 Growing Slower 22
Supplier Deliveries 50.4 56.3 -5.9 Slowing Slower 26
Inventories 49.3 54.1 -4.8 Contracting From Growing 1
Customers' Inventories 44.0 47.0 -3.0 Too Low Faster 28
Prices 59.0 68.0 -9.0 Increasing Slower 25
Backlog of Orders 45.0 49.0 -4.0 Contracting Faster 2
Exports 54.0 53.5 +0.5 Growing Faster 25
Imports 53.5 51.0 +2.5 Growing Faster 23
OVERALL ECONOMY Growing Slower 26
Manufacturing Sector Growing Slower 24
*Number of months moving in current direction.