US November ISM manufacturing PMI 46.7 vs 47.6 expected

  • Prior report 46.7
  • Prices paid 49.9 vs 45.1 prior
  • Employment 45.8 vs 46.8 prior
  • New orders 48.3 vs 45.5 prior
  • Inventories 44.8 vs 43.3 prior
  • Production 48.5 vs 50.4 prior

The US dollar was at the best levels of the day against the euro and pound before this report but it’s slumped since. The market was expecting something better than the ‘expected’ number here because of a strong regional PMI yesterday.

Comments in the report from respondents:

  • “Economy appears to be slowing dramatically. Customer orders are
    pushing out, and all efforts are being made to right-size inventory
    levels, both to mitigate carrying costs on pushed-out orders and to load
    up on inventory where costs are exploding, like cold-rolled steel.”
    (Computer & Electronic Products)
  • “Starting to feel softening in the economy, with labor still a
    challenge to backfill critical roles. The 2024 forecast looks
    challenging, specially from a cost perspective.” (Chemical Products)
  • “Nearly all microchip supply issues have been resolved, finally
    bringing an end to the three-year chip shortage. Material prices are
    remaining relatively flat. Supply chain issues continue in several
    areas, resulting from difficulties during the United Auto Workers (UAW)
    strike.” (Transportation Equipment)
  • “Our executives have requested that we bring down inventory levels
    considerably, and it has started causing customer shortages. Both
    finished goods, and low inventories of raw and packing materials are
    creating issues in fulfilling customer demand, and in some cases causing
    serious (production) delays.” (Food, Beverage & Tobacco Products)
  • “The end of the major construction season and an early pullback in
    customer capital expenditures purchases have resulted in a lower backlog
    in the fourth quarter.” (Machinery)
  • “Automotive sales still impacted by UAW strike. Still waiting for
    orders to come in, and we also need to work down inventory levels that
    increased during the strike period. This will most likely happen in
    December.” (Fabricated Metal Products)
  • “Customer orders have pushed into the first quarter of 2024,
    resulting in inflated end-of-year inventory.” (Miscellaneous
    Manufacturing)
  • “(Our situation is) good but guarded, as next year is hard to
    predict. There are undertones of uncertainty in the market and the
    impact of inflation on maintenance and project costs has become
    apparent.” (Nonmetallic Mineral Products)
  • “Customers back online after the UAW strike. Consuming inventory
    that was built as a strike bank. Still (having) issues with hiring
    quality candidates for both hourly and salaried positions. Current
    inventory levels are too high, but the order book remains strong.”
    (Primary Metals)
  • “Elevated financing costs have dampened demand for residential
    investment. Our business has been negatively impacted through reduced
    new orders for our products and services. We are purchasing less for
    production and finished goods inventories.” (Wood Products)

Generally dour.

This article was written by Adam Button at www.forexlive.com.

expectedISMManufacturingNovemberPMI
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