By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods indicator slipped a
further nine tenths in the Nov. 23 period to 37.9, a recovery low and
further below 50 to indicate deepening contraction in year-on-year
business activity, according to the results of MNI’s weekly survey
released Monday.
Year-on-year sales growth for the period’s 397-company sample is
zero with income at -2.0%. Currency effects are subtracting three
percentage points from export sales.
Ex-aircraft is one notch weaker, at a diffusion reading of 36.6 for
a 1.2 point decline from the prior week. Sales growth is zero with
income at -3.0%.
Guidance from the ex-aircraft group points to -1.0% for sequential
fourth-quarter sales.
Whether sequential or yearly, zeros or near zeros are increasingly
dominating nearly all readings. Year-on-year sales for the total sample
show four zeros in the last five weeks with the four-week average
showing back-to-back zeros. The 12-week average is down for seven weeks
in a row and at +0.6% seems on its way to zero.
Inventory reduction among customers is a common theme of
commentary. Weak orders during October are also being cited.
But not all commentary is negative with some still posting strong
results and forecasting increasing strength into next year.
Editor’s Note: MNI compiles its capital goods indicator based on a
weekly sample of company news and data.
** MNI New York Bureau: 212-669-6430 **
[TOPICS: MDUCG$,MT$$$$,M$U$$$,M$UEQ$,MAUDS$]
