By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index continues to slow
with a 1.3 point decline in the Dec. 30 period to 52.8, ever closer to
the 50 baseline that would indicate no growth in year-on-year business
conditions, according to the results of Market News International’s
weekly survey released Tuesday.
Averages are all sloping downward with the 12-week average, at
62.1, down for the 18th time in 19 weeks.
Sequentially, MNI’s sample points to a fourth-quarter slowdown for
nondefense capital goods shipments.
Sales growth is a year-on-year +5.0% for the slowest rate since
second-quarter last year. Income is in contraction, at a -3.0% for the
worst reading since first-quarter last year. Sample size in the period
is 234 companies.
A slowdown in Europe is one factor holding down the sample as is
the supply dislocation from the flooding in Thailand. The primary
contract manufacturer in Thailand for Emcore (EMKR), which supplies
electronic components, was underwater for most of November which cut
deeply into fourth-quarter sales. Emcore sees the effects lasting into
the second quarter.
Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.
** Market News International New York Newsroom: 212-669-6430 **
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