US DATA: Sept mfg ISM text: “Economic activity in the manufacturing
sector expanded in Sept for the 14th consecutive month, and the overall
economy grew for the 17th consecutive month. While the headline number
shows relative strength this month as the PMI reading of 54.4 percent is
still quite positive, the overall picture is less encouraging. The
growth of new orders continued to slow, as index is down significantly
from its cyclical high of 65.9 percent (January 2010). Production is
currently growing at a faster rate than new orders, but it typically
lags and would be expected to weaken further in Q4. Mfg has enjoyed a
stronger recovery than other sectors of the economy, but it appears that
weaker growth is the expectation for the fourth quarter. Both the
Inventories and Backlog of Orders Indexes are sending strong negative
signals of weakening performance in the sector.” 18 of 13 industries are
reporting growth.
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