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 JULY 2011 | ||||||
|---|---|---|---|---|---|---|
Index | Series Index Jul | Series Index Jun | Percentage Point Change | Direction | Rate of Change | Trend* (Months) |
| 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 | |||
