2 May 2016
US ISM manufacturing: Some indications that the worst may be over - Wells Fargo
Analysts from Wells Fargo, warned that challenges for the manufacturing sector continue but affirmed that today’s report offers indications that the worst of the sector slump may be over
Key Quotes:
“The ISM manufacturing index registered 50.8 in April, indicating a second consecutive month of expanding factory activity. New orders suggest further improvement in the near term, but hiring remains soft.”
“While many challenges persist for the industry, the report offers some indication that the worst of the manufacturing slump may be over.”
“Taken at face value, the employment index suggests another cut to manufacturing payrolls in this Friday’s payroll report, although less severe than the past two months where payrolls have declined by an average of 23,500 jobs.”
“Manufacturers reported an increase in input prices for the second straight month in April. A rebound in commodity prices, including energy products and metals, led 12 out of 18 industries to report higher input costs. The prices index rose to a 20 month high of 59.0 and suggests some support to near-term inflation.”
Key Quotes:
“The ISM manufacturing index registered 50.8 in April, indicating a second consecutive month of expanding factory activity. New orders suggest further improvement in the near term, but hiring remains soft.”
“While many challenges persist for the industry, the report offers some indication that the worst of the manufacturing slump may be over.”
“Taken at face value, the employment index suggests another cut to manufacturing payrolls in this Friday’s payroll report, although less severe than the past two months where payrolls have declined by an average of 23,500 jobs.”
“Manufacturers reported an increase in input prices for the second straight month in April. A rebound in commodity prices, including energy products and metals, led 12 out of 18 industries to report higher input costs. The prices index rose to a 20 month high of 59.0 and suggests some support to near-term inflation.”