Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
A decent report out of ISM on the manufacturing report with a headline number of 53.4 versus 53; the sub-indexes were mixed with new orders down 0.4, employment up 2.9, and prices paid down 0.5. (Totally separate the construction report was quite poor but most eyes will focus on ISM)
“The PMI registered 53.4 percent, an increase of 1 percentage point from February’s reading of 52.4 percent, indicating expansion in the manufacturing sector for the 32nd consecutive month. The Production Index increased 3 percentage points from February’s reading of 55.3 percent to 58.3 percent, and the Employment Index increased 2.9 percentage points to 56.1 percent. Of the 18 industries included in the survey, 15 are experiencing overall growth. Comments from the panel remain positive, with several respondents citing increased sales and demand for the next few months.”
WHAT RESPONDENTS ARE SAYING …
- “Business is robust, driven by a healthy demand for exports and relatively stable raw materials [pricing].” (Chemical Products)
- “Our customers are reporting a potential 10 percent to13 percent increase in purchases for 2012. Actual orders continue to be slow to appear, but expectations continue to be high.” (Machinery)
- “Business conditions [are] very strong and so is outlook.” (Fabricated Metal Products)
- “We have been experiencing 6 percent annual growth and expect that to continue in the near term.” (Food, Beverage & Tobacco Products)
- “Business continues to be brisk — if not robust — [this] month and looking forward.” (Miscellaneous Manufacturing)
- “Business remains essentially stable, with some concerns regarding continued slowdown in China.” (Computer & Electronic Products)
- “Business remains strong.” (Primary Metals)
- “Business improved year over year for the first quarter.” (Plastics & Rubber Products)
- “Generally increasing sales/demand [is] driving higher capacity utilization.” (Transportation Equipment)
- “Sales appear to be picking up over last year at this time, but still have a ways to go.” (Wood Products)
| MANUFACTURING AT A GLANCE MARCH 2012 | ||||||
|---|---|---|---|---|---|---|
| Index | Series Index Mar | Series Index Feb | Percentage Point Change | Direction | Rate of Change | Trend* (Months) |
| PMI | 53.4 | 52.4 | +1.0 | Growing | Faster | 32 |
| New Orders | 54.5 | 54.9 | -0.4 | Growing | Slower | 35 |
| Production | 58.3 | 55.3 | +3.0 | Growing | Faster | 34 |
| Employment | 56.1 | 53.2 | +2.9 | Growing | Faster | 30 |
| Supplier Deliveries | 48.0 | 49.0 | -1.0 | Faster | Faster | 2 |
| Inventories | 50.0 | 49.5 | +0.5 | Unchanged | From Contracting | 1 |
| Customers’ Inventories | 44.5 | 46.0 | -1.5 | Too Low | Faster | 4 |
| Prices | 61.0 | 61.5 | -0.5 | Increasing | Slower | 3 |
| Backlog of Orders | 52.5 | 52.0 | +0.5 | Growing | Faster | 3 |
| Exports | 54.0 | 59.5 | -5.5 | Growing | Slower | 5 |
| Imports | 53.5 | 54.0 | -0.5 | Growing | Slower | 4 |
| OVERALL ECONOMY | Growing | Faster | 34 | |||
| Manufacturing Sector | Growing | Faster | 32 | |||
*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
