Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Positive news from the ISM Manufacturing index at 56.2 vs 55 – not much effect on the market as the government overhang remains the focus. New orders were not very good however in this report; employment did look good. Full report here.
“The PMI™ registered 56.2 percent, an increase of 0.5 percentage point from August’s reading of 55.7 percent. September’s PMI™ reading is the highest of the year, leading to an average PMI™ reading of 55.8 percent for the third quarter. The New Orders Index decreased in September by 2.7 percentage points to 60.5 percent, and the Production Index increased by 0.2 percentage point to 62.6 percent. The Employment Index registered 55.4 percent, an increase of 2.1 percentage points compared to August’s reading of 53.3 percent, which is the highest reading for the year. Comments from the panel are generally positive and optimistic about increasing demand and improving business conditions.”
WHAT RESPONDENTS ARE SAYING …
- “Global sales generally trending moderately higher.” (Textile Mills)
- “Slight increase in demand. Forecast looks better. 4Q looking better than 3Q — should begin to see demand increase in October/November.” (Food, Beverage & Tobacco Products)
- “Raw materials shortages continue. General trends are up, which enhances shortage issues.” (Wood Products)
- “Overall business is flat to down across the board.” (Machinery)
- “Housing continues to improve, resulting in improved conditions for our industry.” (Furniture & Related Products)
- “Rising costs of China labor has us re-evaluating our current position in that country.” (Computer & Electronic Products)
- “Steady increase in work this month.” (Primary Metals)
- “Overall business is picking up.” (Transportation Equipment)
- “Outlook remains strong with housing market and customer orders.” (Electrical Equipment, Appliances & Components)
- “Labor rates along the Gulf Coast are rising with the increased activity of construction and maintenance projects.” (Chemical Products)
| MANUFACTURING AT A GLANCE SEPTEMBER 2013 |
||||||
|---|---|---|---|---|---|---|
|
Index |
Series Index Sep |
Series Index Aug |
Percentage Point Change |
Direction |
Rate of Change |
Trend* (Months) |
| PMI™ | 56.2 | 55.7 | +0.5 | Growing | Faster | 4 |
| New Orders | 60.5 | 63.2 | -2.7 | Growing | Slower | 4 |
| Production | 62.6 | 62.4 | +0.2 | Growing | Faster | 4 |
| Employment | 55.4 | 53.3 | +2.1 | Growing | Faster | 3 |
| Supplier Deliveries | 52.6 | 52.3 | +0.3 | Slowing | Faster | 3 |
| Inventories | 50.0 | 47.5 | +2.5 | Unchanged | From Contracting | 1 |
| Customers’ Inventories | 43.0 | 42.5 | +0.5 | Too Low | Slower | 22 |
| Prices | 56.5 | 54.0 | +2.5 | Increasing | Faster | 2 |
| Backlog of Orders | 49.5 | 46.5 | +3.0 | Contracting | Slower | 5 |
| Exports | 52.0 | 55.5 | -3.5 | Growing | Slower | 10 |
| Imports | 55.0 | 58.0 | -3.0 | Growing | Slower | 8 |
| OVERALL ECONOMY | Growing | Faster | 52 | |||
| Manufacturing Sector | Growing | Faster | 4 | |||
*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/index.php/the-fund/holdings
