- Prior month 48.4 (was expecting 48.5)
- Prices paid 44.5 vs. 39.5 estimate. Last month 39.4
- employment 50.6 vs. 49.0 estimate. Last month 51.4
- new orders 42.5 vs. 45.1 last month
- production 48.0 vs 48.5 last month
- order backlog 43.4 vs. 41.4 last month
- new export orders 49.4 vs. 46.2 last month
- imports 47.8 versus 45.1 last month
Prices also rose in the S&P Global manufacturing PMI and that makes some sense with raw materials prices ticking up but it's the kind of thing that should get the Fed 's attention.
Comments in the report:
- “Business is still strong, but we have begun to see softening in some pricing, and lead times seem to be improving.” [Computer & Electronic Products]
- “Conditions are reasonable. Sales are a little better than planned. Cost pressures are easing for most products. There have been a lot fewer supply disruptions so far this year, and few expected in the short term. The crystal ball remains a little blurry for the rest of 2023.” [Chemical Products]
- “Sales have dropped (as expected) at the beginning of the year. Forecast from the sales department is showing even lower sales then we expected. If this holds true, inventory levels will rise slightly over next month and a half.” [Food, Beverage & Tobacco Products]
- “Supply chain issues continue to plague our production schedules. Transportation from our overseas suppliers is also contributing to delays. Lead times have doubled for critical electronics, gaskets, sealants, and specialized steel.” [Transportation Equipment]
- “Strong big ag demand continues to drive heightened demand for parts. Large construction/off highway original equipment manufacturers have strong demand as well. Creating continued capacity constraints with the supply base.” [Machinery]
- “Some business segments showing demand softening globally. Many materials showing improved lead times as well as cost deflation.” [Electrical Equipment, Appliances & Components]
- “Thus far, the outlook for the first half of 2023 looks very soft. Demand for our products has taken a sharp downward turn. Our inventories are high, as well as our customers’. It seems everyone is bracing for a recession.” [Fabricated Metal Products]
- “Customers are being quite aggressive in pursuing price decreases, far beyond the price relief we are actually receiving from our suppliers.” [Miscellaneous Manufacturing]
- “Industrial construction is strong. Commercial construction is slower.” [Nonmetallic Mineral Products]
- “In the past two weeks, we are seeing a slowing of new orders.” [Primary Metals]
