By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index slipped 1.3 points
in the Aug. 19 period to 73.8, well beyond 50 to indicate very strong
growth in year-on-year business conditions, according to the results of
Market News International’s weekly survey released Monday.
Year-on-year sales are +13.2% while income is at +13.0% with trends
for both steady to flat.
The competitive dollar is a key plus for the sample, adding 5% to
year-on-year export sales. Sample size in the latest period is 505
companies.
This sample is pointing to strength for nondefense capital goods
shipments in Wednesday’s durable goods report. But given general
softening in new orders and consumer-based weakness in the electronics
group, it’s an open question whether third-quarter shipments can match
the very solid second-quarter pace of +2.3%.
Magnetek (MAG) reports steady strength in demand for its power
supplies that have material handling and mining applications and it
reports no slowdown on the industrial side of its business.
Despite general signs of economic weakness, Zygo (ZIGO), which
makes metrology instruments, reports steady rates of bookings and sales
which it attributes to the strength of its product line and the
diversity of its markets.
Oscilloscope maker LeCroy (LCRY) reports strong demand, steady
order momentum and record backlogs. The company sees 20% plus
year-on-year growth extending into the third quarter.
Seismic instruments maker Bolt Technology (BOLT) is reporting solid
conditions but not at its underwater robotics unit which is being hurt
by budgetary pressures at its government customers.
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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