By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index slipped 1.1 points
in the Oct. 7 period to 64.9, still well above 50 to indicate very
strong growth in year-on-year business conditions, according to the
results of Market News International’s weekly survey released Tuesday.
The pre-announcement period ahead of the third-quarter earning
season has been very quiet, suggesting that companies in the sample will
be meeting guidance and sticking to trend.
Descriptions of business conditions are very strong, as reflected
in the 60-plus index level, and continue to exceed trends in underlying
sales and income growth.
Sales growth, at a year-on-year +8.6%, is trending at the the
slowest rate since the second quarter last year.
The sample’s income growth, at +7.0%, is trending at the weakest
rate since the first quarter last year. Sample size in the latest period
is 201 companies.
Guidance from the sample points to an extension of these high
single digit rates for sales and income through year end.
One risk to the outlook that has yet to be addressed by the sample
is ongoing strength in the dollar which will cut into export sales.
Foreign-exchange benefits have added 5% to the sample’s year-on-year
export sales in recent months.
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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