By Mark Pender
NEW YORK (MNI) – Market News International’s U.S. capital goods
index rose more than three points in the Dec. 10 period to 70.4
indicating strong year-on-year growth yet no significant
quarter-to-quarter growth, according to MNI’s weekly survey.
Sales for the 142-company sample are an on-year +12.9%, slightly
below the four-week and 12-week averages. Currency is moving to neutral
following six months of a low single digit negative effect.
Income, at +28%, is slightly above the four-week average and well
above the 12-week average of +20%.
MNI’s data point to a steady reading for the business equipment
index in Wednesday’s industrial production report for November, an index
that jumped a very sharp 1.1% in October to an on-year +10.4%.
Orders at chip equipment maker Phototronics (PLAB) accelerated in
November. The company expects strong demand for advanced products over
the next six months.
NCI Building Systems (NCS), which makes metal products for
non-residential construction, reports a pick-up in quoting activity.
Boosted in part by solid momentum in its Chinese business, orders
and backlogs at manufacturing-systems maker Gerber Scientific (GRB) are
at recovery highs: “… our outlook has certainly become more positive.”
Boeing (BA), despite press reports, has yet to announce a 787
delivery push back. Aircraft-products maker Esterline (ESL) reports
accelerating activity in preparation for increased narrow body
production at both Boeing and Airbus.
Virco Manufacturing (VIRC), which makes furniture for public
schools, is posting on-year single-digit declines and warns that 2011
will be no better than 2010. It notes continuing challenges facing
tax-supported government spending and believes that municipal and state
bonds may now be entering a period of difficulty.
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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