- 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.
