The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "Manufacturing growth continued in September while some sectors of the economy are apparently struggling. The trend is toward slower growth in manufacturing as the rate of growth in both the New Orders Index and Production Index slowed. The sector is apparently in excellent shape with regard to inventories as the Inventories Index fell to 41.6 percent, indicating significant inventory liquidation, and the rate of growth in the Employment Index increased slightly in September. Overall, September looks like a good month for manufacturing."
My personal favorite part of the survey is the anecdotal evidence. My assumption is the group outs in statements that are representative of a wide swath of answers.
*"Business continues strong across all market segments." (Primary Metals)
* "Outlook going forward is cloudy due to concerns from the mortgage market." (Fabricated Metal Products)
* "Economy appears to be in neutral. Waiting to see if the consumer confidence shows itself for the Christmas season as gasoline prices level off." (Transportation Equipment)
* "Signs of softening in pace of new orders." (Miscellaneous Manufacturing)
Three of four of the comments were neutral (at best).
This report has fueled speculation for a rate cut which is driving stocks higher as of this writing.
