• Prior was 51.9
  • employment index 49.2 versus 50.8 prior
  • new orders index 52.9 versus 56.1 expected
  • prices paid index 56.2 versus 59.6 prior — lowest since May 2020
  • new export orders 59.0 versus 60.9 last month
  • imports 50.0 versus 51.3 last month
  • backlog of orders 40.9 versus 49.7 last month
  • inventories 58.3 versus 47.2 last month
  • supplier deliveries 47.7 versus 48.6 last month
  • inventory sentiment 61.0 versus 48.9 last month

Bad news is good news as the market cheers a softer reading. The odds of the Fed staying on hold rose with this report to 27% from 30%. The US dollar has fallen across the board as both the headline and price metrics dip.

Comments in the report:

  • “Restaurant sales continue to track positive year over year, up an
    average of 8 percent past month. Employment needs have leveled off, and
    we are in a position to evaluate and upgrade rather than just maintain.
    Supply chain pressures have eased overall with some categories still hot
    spots. We are in a position to continue investing in technology
    upgrades and restaurant remodels.” [Accommodation & Food Services]
  • “Overall slowing growth and market conditions dragging on some construction sectors.” [Construction]
  • “As a higher-education institute, enrollment will have a major
    impact on our institution. Factors to consider will be the economy
    (state and national), as well as continued funding for education. Our
    enrollment is currently projected to drop 2.5 percent, which will have a
    negative effect on our budget.” [Educational Services]
  • “Pent-up demand for services is driving strong revenue performance,
    but expenses (labor and supplies) continue to put pressure on margins,
    hindering the financial forecast. There is modest improvement in
    financial metrics, but it is becoming clear we will have to find ways to
    do more with less. Supply chains are stabilizing, though some segments
    remain choppy. The overall outlook, however, suggests the forecast is
    good for the next quarter. Pent-up demand for services is also causing
    capacity constraints, but we appear to be managing appropriately at this
    time.” [Health Care & Social Assistance]
  • “Electronic components supply is strong, and lead times are nearly back to pre-pandemic.” [Information]
  • “Economy is slowing amid increased financial banking and leasing
    activity. Credit standards have increased, and approvals have fallen —
    thus, a tight credit situation.” [Management of Companies & Support
    Services]
  • “Everything seems to have leveled off: not getting any worse, not
    getting any better.”     [Professional, Scientific & Technical Services]
  • “Lead times are starting to shorten, due in part to greater
    transportation availability. Prices, in general, are continuing to
    increase but at a slower pace. Supply chain is becoming much more
    reliable.” [Public Administration]
  • “Overall business is good, and there has not been a significant change in direction.” [Retail Trade]
  • “Business has significantly increased, with more orders, newer
    customers and more activity in general. More end users are getting back
    to business as usual, fighting for lower prices and taking a few more
    days to pay. The leverage point seems to have shifted back to end users,
    which is healthy.” [Transportation & Warehousing]
  • “Business conditions continue to remain elevated as CapEx (capital
    expenditures) spending in clean energy follows regulatory demands.”
    [Utilities]
  • “Supply is plentiful, freight is moving quickly and costs are coming
    down. This is a 180-degree change from a year ago. Also, sales demand
    is down.” [Wholesale Trade]