By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods indicator slowed by three
tenths in the Aug. 24 period to 45.7, further below 50 to a level that
indicates moderate year-on-year contraction in business activity,
according to the results of MNI’s weekly survey released Monday.
Sales are +1.3% year-on-year with income at +2%. The foreign
exchange effect on export sales is -4%. The period’s sample size is 409
companies.
Guidance from MNI’s sample points to modest sequential slowing for
third-quarter sales growth. The sequential comparison is +1.3% which was
the rate of shipment growth for second-quarter nondefense capital goods.
The sample’s commentary remains focused on troubles in Europe and
its contagion effect on other export markets.
Sectors in the sample showing the most pronounced weakness are
electronics machinery and communications equipment. On the plus side are
energy equipment, aerospace, and commercial construction.
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$]
