By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods indicator improved by
nine tenths in the Oct. 5 period to a 44.8 level that, however, is still
well below 50 to indicate sizable contraction in year-on-year business
activity, according to the results of MNI’s weekly survey released
Tuesday.
Sales are +1.5% year-on-year with the foreign exchange effect on
export sales at -4%.
Income growth is zero. The period’s sample size is 259 companies.
All readings from the sample show very little change, not only over
the last month, but over the last three months.
Despite the stubborn weakness in year-on-year readings, the sample
as a whole sees a slight gain for sequential sales in the third quarter.
Pre-announcements for the third quarter so far are slightly more
negative than positive.
Year-on-year contraction in European operations is increasingly
cited, with increasingly negative comments about North America popping
up.
Reports of weak spot prices for raw materials are also popping up.
Weakness in telecom infrastructure is repeatedly cited.
On the positive side, many companies are still posting
stronger-than-expected sales with strong backlogs widely cited.
Improvement underway in commercial construction is also cited.
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 **
[TOPICS: MDUCG$,MT$$$$,M$U$$$,M$UEQ$,MAUDS$]
