Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
ISM Manufacturing slightly below expectation but not affecting the markets much. Of the sub indexes, new orders was up 1, employment down 0.5, while prices surged 8. Last one is certainly interesting,
Full report here
“The PMI registered 54.1 percent, an increase of 1 percentage point from December’s seasonally adjusted reading of 53.1 percent, indicating expansion in the manufacturing sector for the 30th consecutive month. The New Orders Index increased 2.8 percentage points from December’s seasonally adjusted reading to 57.6 percent, reflecting the 33rd consecutive month of growth in new orders. Prices of raw materials increased for the first time in the last four months. Manufacturing is starting out the year on a positive note, with new orders, production and employment all growing in January.”
WHAT RESPONDENTS ARE SAYING …
- “Still seeing raw materials pricing moving down in general, but expect inflation later in the quarter.” (Chemical Products)
- “Year starting a little slow, but customers are positive about increased business in 2012.” (Machinery)
- “Once again, business continues to be strong.” (Paper Products)
- “Pricing remains in check with the demand we are seeing. Supplier deliveries are on time or early.” (Food, Beverage & Tobacco Products)
- “The economy seems to be slowly improving.” (Fabricated Metal Products)
- “Business lost to offshore is coming back.” (Computer & Electronic Products)
- “Business remains strong. Order intake is great — more than 20 percent above budget.” (Primary Metals)
- “Indications are that 2012 business environment will improve over 2011.” (Transportation Equipment)
- “Market conditions appear to be improving, with the outlook for 2012 better yet.” (Wood Products)
| MANUFACTURING AT A GLANCE JANUARY 2012 |
||||||
|---|---|---|---|---|---|---|
| Index | Series Index Jan |
Series Index Dec |
Percentage Point Change |
Direction | Rate of Change |
Trend* (Months) |
| PMI | 54.1 | 53.1 | +1.0 | Growing | Faster | 30 |
| New Orders | 57.6 | 54.8 | +2.8 | Growing | Faster | 33 |
| Production | 55.7 | 58.9 | -3.2 | Growing | Slower | 32 |
| Employment | 54.3 | 54.8 | -0.5 | Growing | Slower | 28 |
| Supplier Deliveries | 53.6 | 51.5 | +2.1 | Slowing | Faster | 31 |
| Inventories | 49.5 | 45.5 | +4.0 | Contracting | Slower | 4 |
| Customers’ Inventories | 47.5 | 42.5 | +5.0 | Too Low | Slower | 2 |
| Prices | 55.5 | 47.5 | +8.0 | Increasing | From Decreasing | 1 |
| Backlog of Orders | 52.5 | 48.0 | +4.5 | Growing | From Contracting | 1 |
| Exports | 55.0 | 53.0 | +2.0 | Growing | Faster | 3 |
| Imports | 52.5 | 54.0 | -1.5 | Growing | Slower | 2 |
| OVERALL ECONOMY | Growing | Faster | 32 | |||
| Manufacturing Sector | Growing | Faster | 30 | |||
*Number of months moving in current direction.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
