By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods indicator rose eight
tenths in the July 13 period to a sub-50 level of 45.1 that still
indicates significant contraction in year-on-year business activity,
according to the results of MNI’s weekly survey released Monday.
Year-on-year growth has been slowing since August last year which
was the last time that the 12-week average, currently at 47.7, posted a
weekly gain.
It was June last year that the 12-week average for sales last went
up. The average is at +2.7% vs. +7.6% at the beginning of the year and
vs. the recovery peak of +15.3% which was back in June.
The year-on-year sales rate for the July 13 week is +1.0% which is
the lowest since April 2010. Foreign exchange isn’t helping, shaving two
percentage from sales.
Readings on year-on-year income change, at -5% in the latest
period, have been mostly negative through the second quarter. Sample
size is the same as the prior period at 246 companies.
Though the pre-announcement season and early part of the earnings
season have so far been chocked with warnings and misses, guidance from
the sample is still calling for sequential, though marginal,
second-quarter sales growth.
Companies are reporting increasing problems closing deals and the
list of soft regions is widening to include some emerging markets
particularly India.
Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.
** MNI New York Bureau: 212-669-6430 **
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