From Karim:
Very weak both in levels and rate of change across most key components.
Production, orders, employment and export orders all down 5-12 points on the month.
Prices paid down 23.5 points.
- “We have experienced a larger-than-expected slowdown in orders during the last month.” (Electrical Equipment, Appliances & Components)
- “Steel, a main raw good for our business, has finally started showing some signs of softening a bit.” (Machinery)
- “Business continues to slow down. Fourth quarter 2008 is going to be down 15 percent from third quarter.” (Fabricated Metal Products)
- “Customers waiting for material price reductions in the face of falling oil prices.” (Plastics & Rubber Products)
- “Continued strong export demand across several product lines.” (Chemical Products)
Agreed, looks like a negative 4th quarter if this continues and Congress keeps buyers of everything in fear and on the sidelines.
This line is interesting as well:
- “Customers waiting for material price reductions in the face of falling oil prices.” (Plastics & Rubber Products)
Manufacturing at a Glance
September 2008
September 2008
| Index | Series Index September | Series Index August | Percentage Point Change | Direction | Rate of Change | Trend (Months) |
| PMI | 43.5 | 49.9 | -6.4 | Contracting | Faster | 2 |
| New Orders | 38.8 | 48.3 | -9.5 | Contracting | Faster | 10 |
| Production | 40.8 | 52.1 | -11.3 | Contracting | From Growing | 1 |
| Employment | 41.8 | 49.7 | -7.9 | Contracting | Faster | 2 |
| Supplier Deliveries | 52.5 | 50.3 | +2.2 | Slowing | Faster | 15 |
| Inventories | 43.4 | 49.3 | -5.9 | Contracting | Faster | 3 |
| Customers’ Inventories | 53.5 | 54.5 | -1.0 | Too High | Slower | 2 |
| Prices | 53.5 | 77.0 | -23.5 | Increasing | Slower | 21 |
| Backlog of Orders | 35.0 | 43.5 | -8.5 | Contracting | Faster | 5 |
| Exports | 52.0 | 57.0 | -5.0 | Growing | Slower | 70 |
| Imports | 44.0 | 48.5 | -4.5 | Contracting | Faster | 8 |
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