ISM manufacturing
- Highest since Aug 2018
- Prior was 57.5
- New orders 67.9 vs 65.1 (prior 65.1)
- Prices paid 77.6 vs 65.0 expected (prior 65.4)
- Employment 51.5 vs 48.4 prior
This is a great report, something I warned about earlier. With a slight bump from here, it will be at the highest since 2004. The gains comes after a strong Markit manufacturing PMI yesterday. The jump in prices paid should be concerning for the Fed but they continue to brush it off.
Comments in the report are positive:
- "Our company and industry are continuing to have tailwinds from the COVID-19 pandemic research support for vaccines and treatments. While our services are delayed, many customers are not cancelling outright, and business picked up for us in the last month - especially in China, where business growth is back on track." (Computer & Electronic Products)
- "Continued to survive COVID-19 shutdowns, customer restrictions and personnel issues (work from home and COVID-19 outbreaks) and managed to maintain slight growth over 2019." (Chemical Products)
- "COVID-19 outbreaks are causing supply chain issues for Tier-1 and Tier-2 suppliers. More work needs to ensure suppliers keep us in the loop with any problem in their supply chain. But end-customer demand for products is keeping production and future outlook positive." (Transportation Equipment)
- "COVID-19 is affecting us more strongly now than back in March. Vendors/service suppliers unable to maintain levels of service due to employee shortages. Logistic issues also hurting us due to coronavirus-related problems." (Food, Beverage & Tobacco Products)
- "Current business outlook is strong through the first quarter of 2021. We are anticipating 20 percent growth in sales for 2021." (Fabricated Metal Products)
- "Sales are now slightly above pre-COVID-19 sales." (Machinery)
- "Sales are now exceeding pre-COVID-19 levels, but uncertainty remains through the winter months while COVID-19 is still rampant." (Miscellaneous Manufacturing)
- "Business is stronger than expected, with higher demand for many products. Volatility continues due to the very persistent pandemic and associated risks." (Electrical Equipment, Appliances & Components)
- "Suppliers are having difficulty finding and retaining labor leading to supply constraints." (Plastics & Rubber Products)
- "Fourth-quarter production improved more than anticipated, both against the rolling forecast and compared to typical Q4 business." (Primary Metals)
