Details:

  • Manufacturing PMI 46.9 versus 47.1 last month
  • prices paid 44.2 versus 52.0 estimate and 53.2 last month
  • employment 51.4 versus 50.2 last month
  • new orders 42.6 versus 45.7 last month
  • production 51.1 versus 48.9 last month
  • supply deliveries 43.5 versus 44.6 last month
  • inventories 45.8 versus 46.3 last month
  • customer inventories 51.4 versus 51.3 last month
  • backlog of orders 37.5 versus 43.1 last month
  • new export orders 50.0 versus 49.8 last month
  • imports 47.3 versus 49.9 last month

The prices paid number stands out in a big way and we’ve seen fresh US dollar lows on the headlines, with USD/JPY touching 138.47, down 85 pips.

Comments in the report:

  • “Overall impact for our business is mixed. Our scientific
    instrumentation business continues to be weakened by lending to support
    capital purchasing, while services and consumables stay on track and
    continue to increase in some markets. Hiring has slowed in response to
    continued global uncertainty on inflation and unrest in Europe.”
    [Computer & Electronic Products]
  • “Demand continues to gain momentum due to new business pipelines
    finally yielding billable production. Personal care and home care are
    drivers.” [Chemical Products]
  • “We continue to have a strong backlog for our customer orders;
    however, new orders are slowing. Our supplier on-time delivery continues
    to be a challenge for us, and we still face price increases on a weekly
    basis. Labor shortages are getting better within our organization and
    throughout our supply chain.” [Transportation Equipment]
  • “Pricing seems to be becoming the primary focus of supply and
    sourcing teams, as customers and consumers are beginning to push back.
    While inflation is easing on some discretionary goods, high food costs
    persist across most categories.” [Food, Beverage & Tobacco Products]
  • “Business is returning to pre-pandemic levels. There is increased
    demand in commercial/government markets and reduced demand in
    residential/consumer markets.” [Machinery]
  • “Less volatility in customer demand from one month to six months
    out; seeing signs of slowing in the second half of 2023 and potentially
    into early 2024. Logistics, particularly from East Asia, continue to
    return to historical-level transit times; Europe and India remain
    elevated. Supply shortages are limited to select items only. Suppliers
    are still seeking price increases but are too late to be asking now.”
    [Fabricated Metal Products]
  • “Although sales are slightly lower, they are holding at current rate
    — soft, not catastrophic.” [Furniture & Related Products]
  • “Moderate increase in customer orders/demand, supplier deliveries
    improving, and raw material prices stable to soft.” [Plastics &
    Rubber Products]
  • “Business conditions are good, demand remains strong, and we are
    continuing to ramp up production to keep up.” [Miscellaneous
    Manufacturing]
  • “Industrial and high-tech demands are pushing out, as a slowdown is
    clear. This is stunting growth and currently making 2023 demand look
    flat to only slightly up, compared to original projections of 10-percent
    growth.” [Electrical Equipment, Appliances & Components]