By Mark Pender

NEW YORK (MNI) – MNI’s U.S. capital goods indicator edged four
tenths higher in the Nov. 30 period to 38.3, still well below 50 to
indicate deep contraction in year-on-year business activity, according
to the results of MNI’s weekly survey released Monday.

Year-on-year sales for the period’s 342-company sample are +0.3%
with income at -3.0%. Currency effects are subtracting three percentage
points from export sales.

The diffusion indicator for the ex-aircraft sample is 36.8, which
is two tenths higher than the prior period. Year-on-year sales growth is
zero with income, like it is for the whole sample, at -3.0%.

Guidance from both the ex-aircraft sample and the total sample
point to no growth for sequential fourth-quarter sales.

Comments are as flat as the numbers. What positive comments there
are, are often centered on the success of specific products, mostly new

Most comments center on customer destocking and the difficulty of
getting customers to commit to new orders.

Editor’s Note: MNI compiles its capital goods indicator based on a
weekly sample of company news and data.

** MNI New York Bureau: 212-669-6430 **