After yesterday’s disappointing Markit survey of US Manufacturing, analysts expected ISM Manufacturing to print lower and its did significantly. December ISM Manufacturing printed 58.7, well below the 60.0 expected and the 61.1 prior as it caught down to the 12-month lows of Markit’s measure…
Source: Bloomberg
Moist notably, Prices Paid tumbled in December to its lowest since Nov 2020…
Source: Bloomberg
Orders dropped modestly also. The ISM’s factory production measure slipped to 59.2, the lowest since July but robust by historical standards. The pullback may reflect disruptions due to the omicron variant.
Improved delivery times and lower input prices typically indicate softer demand. However, ISM claims that the latest declines suggest capacity constraints are beginning to loosen. That’s welcome progress for manufacturers who have struggled to keep up with demand because of materials shortages, hiring challenges and transportation bottlenecks.
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