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2 Feb 2015
US manufacturing ISM weakens further in January – KBC
FXStreet (Barcelona) - The KBC Bank Research Desk reviews today’s US ISM manufacturing data release, noting that ISM registered a drop for the third consecutive month, falling to 53.5 due to poor demand from abroad.
Key Quotes
“In January, the US manufacturing ISM dropped for a third consecutive month, from 55.1 to 53.5, while only a limited decline to 54.5 was expected. The manufacturing ISM is now again at its lowest level since the start of last year when harsh winter weather weighed on activity.”
“Looking at the details, new orders dropped sharply (from 57.8 to 52.9) and new export orders even contracted, for the first time in 14 months. Backlog of orders and supplier deliveries weakened sharply too.”
“A more moderate slowdown was seen in production (56.5 from 57.7), customer inventories (42.5 from 44.5) and employment (54.1 from 56.0), while inventories and imports picked up in January. Prices paid dropped further falling from 38.5 to 35.0.”
“The drop in the manufacturing ISM suggests that activity in the sector is slowing further at the start of the year, mainly due to poor demand from abroad.”
“Slow growth outside the US is probably weighing on demand together with the stronger dollar, while lower costs are unable to boost sentiment.”
“The index remains however close to its LT average, indicating that activity is still moderate.”
Key Quotes
“In January, the US manufacturing ISM dropped for a third consecutive month, from 55.1 to 53.5, while only a limited decline to 54.5 was expected. The manufacturing ISM is now again at its lowest level since the start of last year when harsh winter weather weighed on activity.”
“Looking at the details, new orders dropped sharply (from 57.8 to 52.9) and new export orders even contracted, for the first time in 14 months. Backlog of orders and supplier deliveries weakened sharply too.”
“A more moderate slowdown was seen in production (56.5 from 57.7), customer inventories (42.5 from 44.5) and employment (54.1 from 56.0), while inventories and imports picked up in January. Prices paid dropped further falling from 38.5 to 35.0.”
“The drop in the manufacturing ISM suggests that activity in the sector is slowing further at the start of the year, mainly due to poor demand from abroad.”
“Slow growth outside the US is probably weighing on demand together with the stronger dollar, while lower costs are unable to boost sentiment.”
“The index remains however close to its LT average, indicating that activity is still moderate.”