ISM non-manufacturing data for January 2020:
- Prior was 54.9
Details:
- Business activity 60.9 vs 57.0 last month
- Employment 53.1 versus 55.2 last month
- New orders 56.2 versus 54.9 last month
- Prices paid 55.5 vs 58.5 last month
- Supplier deliveries 51.7 versus 52.5 last month
- Order backlog 45.5 versus 47.5 last month
- Export orders 50.1 versus 51.0 last month
- Imports 55.1 versus 48.0 last month
- Inventories 46.5 versus 51.0 last month
The headline is a bit better but it's still below everything from 2017 through most of 2019. Perhaps some of that is coming because Fed cuts are lagged but it doesn't look like an accelerating economy.
Comments in the reports:
- "Business has picked up considerably. Many of our suppliers are working at or above full capacity. Tariffs are still a concern and are believed to be a factor in short supply and higher prices of electronic parts. Our profit margin has been somewhat negatively affected by high tariffs, particularly on electronic parts from China." (Computer & Electronic Products)
- "Small signs of increased global demand in the chemical segment." (Chemical Products)
- "Continued signs of slowdown in manufacturing." (Transportation Equipment)
- "Demand for prepared frozen food continues to be strong, but margins compressing as inputs rise with price elasticity preventing accompanying increases." (Food, Beverage & Tobacco Products)
- "Our customer slowdown has not reached the bottom." (Petroleum & Coal Products)
- "Our business is starting 2020 stronger than we finished 2019, as we saw a dramatic downturn in orders over the last four months of 2019. Orders are up to start the year, but slightly behind where they were one year ago." (Fabricated Metal Products)
- "Business is good - above last year, though a little below plan." (Furniture & Related Products)
- "The annual holiday slowdown was slightly more significant compared to the previous three years, heightening concerns over the 2020 first-quarter forecast." (Electrical Equipment, Appliances & Components)
- "The lack of faith in the economy seems to be why we cannot sell capital projects." (Machinery)
- "Tariffs on injection molds will impact selection of mold builder for future jobs. We are more likely to choose domestic rather than offshore." (Plastics & Rubber Products)
