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|
|New Orders||49.2||51.6||-2.4||Contracting||From Growing||1|
|Customers' Inventories||44.0||47.0||-3.0||Too Low||Faster||28|
|Backlog of Orders||45.0||49.0||-4.0||Contracting||Faster||2|