By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index slowed nearly six
points in the Sept. 10 period to 68.6, yet it remains near multi-year
highs, indicating strong growth for the industrial sector, according to
Market News International’s weekly survey released Monday.
Data this time in the quarter is centered in pre-announcements
which have been favorable. Sales are near multi-year highs at a
year-on-year +16.4%. Income is +35%. Sample size for the period is 113
companies.
Last week’s trade data for July showed strength for capital goods
exports which, like overall shipments, are at a recovery high.
Indications in this sample point to a sixth straight increase for the
business equipment component of Wednesday’s industrial production
report.
Though counter-seasonal strength is the theme of the sample, a run
of complaints over price weakness appeared in the week.
Virco (VIRC), which makes furniture for the commercial and
educational markets, has “aggressively” lowered prices. It expects
prices to remain low for the balance year and “perhaps well into” next
year.
Pricing is a problem right now for medical-equipment maker Angio
Dynamics (ANGO) which reports a volume slowdown in the U.S. for cancer
and vascular procedures.
Backlogs are down at NCI Building Systems (NCS), a maker of
non-residential metal products. The company blames the decline on
general economic weakness and on lower prices. Describing its markets as
challenging, it sees no better than flat sequential sales for its
October 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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