ISM manufacturing data:

ISM manufacturing

  • 10-year low
  • Prior was 49.1
  • Employment 46.3 vs 47.7 prior
  • Prices paid 49.7 vs 46.0
  • New orders 47.3 vs 47.2
  • Only 17% of industries reported overall growth

This is a poor report and the worst since June 2009. Needless to say, that wasn't a great time. As you can see on the chart, it dipped narrowly below the early-2016 low, which came as energy and investment evaporated.

The US dollar is getting stung by this data and risk trades are retreating.

Comments in the report:

  • "Second month in a row in which shipments have outpaced new orders." (Computer & Electronic Products)
  • "Continued softening in the global automotive market. Trade-war impacts also have localized effects, particularly in select export markets. Seeing warehouses filling again after what appeared to be a short reduction of demand." (Chemical Products)
  • "Business outlook remains cautious. Orders seem to be decreasing, but luckily not as sharp of a decrease as we were expecting." (Transportation Equipment)
  • "Chinese tariffs going up are hurting our business. Most of the materials are not made in the U.S. and made only in China." (Food, Beverage & Tobacco Products)
  • "General market is slowing even more than a normal fourth-quarter slowdown." (Fabricated Metal Products)
  • "Demand softening on some product lines, backlogs have reduced, and dealer inventories are growing." (Machinery)
  • "Business has been flat for us. Year-over-year growth has slowed dramatically." (Miscellaneous Manufacturing)
  • "We have seen a reduction in sales orders and, therefore, a lower demand for products we order. We have also reduced our workforce by 10 percent." (Plastics & Rubber Products)
  • "Incoming sales are sluggish for this time of year." (Furniture & Related Products)