By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index ends five weeks of
slowing in the Dec. 9 period with a six tenths gain to 57.1, well above
50 to indicate solid growth in year-on-year business conditions,
according to the results of Market News International’s weekly survey
released Monday.
But sequentially MNI’s data, where moving averages are on the
downswing, are pointing to a tangible slowing for fourth-quarter
nondefense capital shipments.
Sales in the sample, at a year-on-year +6.0%, are up just a one
tenth from the prior period’s year-and-a-half low. Income is showing no
year-on-year change for the weakest reading since March last year.
Sample size in the current period is 247 companies.
Concern over Europe is the central negative for the sample’s
outlook while a big positive, highlighted below by commentary from two
companies, is the outlook for aerospace.
Aircraft products maker Esterline (ESL) believes the commercial
aerospace sector is in the “early innings” of an upcycle. It notes that
build rates are accelerating, especially for Airbus A320s and Boeing
737s.
Hexcel (HXL) describes aerospace demand as “surging” and sees its
own sales posting another year of double-digit growth. The materials
maker cites accelerating build rates and new composite-rich aircraft
programs that are entering production.
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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