- Prior was 50.2
- Estimates ranged from 48.0 vs 50.4
- Prices paid 43.0 vs 47.5 expected (prior 46.6)
- Production 51.5 vs 52.3 prior
- Employment 48.8 vs 50.0 prior
- New orders 47.2 vs 49.2 prior
- Order backlog 40.0 vs 45.3 prior
- New export orders 48.4 vs 46.5 prior
This is the first reading below 50 in two-and-a-half years. I'd be surprised if the market was priced at the 'consensus' because the regional numbers have been soft.
Comments in the report aren't positive:
- "Customer demand is softening, yet suppliers are maintaining high prices and record profits. Pushing for cost reductions based on market evidence has been surprisingly successful.” [Computer & Electronic Products]
- “Future volumes are on a downward trend for the next 60 days.” [Chemical Products]
- “Orders for transportation equipment remain strong. Supply chain issues persist, with minimal direct effect on output.” [Transportation Equipment]
- “Consumer goods are slowing down in several of our markets, although the U.S. economy seems decent. Cannot say the same for the European economy.” [Food, Beverage & Tobacco Products]
- “General economic uncertainty has created a slowdown in orders as we approach the end of the year, and many of our key customers are reducing their capital expenditures spend.” [Machinery]
- “Overall, things are worsening. Housing starts are down. We’re doing well against our competitors, but the industry overall is down. We’re sitting on cash (that is) tied up in inventory.” [Electrical Equipment, Appliances & Components]
- “The market remains consistent: sales match expectations; there are concerns about the impact of rising interest rates on customers; most suppliers have recovered on labor, but some are still struggling; and inflation seems to have peaked, but commodity price decreases have not been passed through to us. Lots of unknowns regarding impact to the European Union from the Russia-Ukraine war and questions about customer behavior in 2023.” [Miscellaneous Manufacturing]
- “There is caution going into 2023, but the commercial section of construction seems to still be going strong.” [Nonmetallic Mineral Products]
- “Looking into December and the first quarter of 2023, business is softening as uncertain economic conditions lie ahead.” [Plastics & Rubber Products]
- “Slight improvement on overall business conditions from the previous month.” [Primary Metals]
Note the collapse in the backlog of orders:
