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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

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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