By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index is little changed
in the Oct. 1 period, at a 56.3 level that points to a flattening
recovery slope for the sector, according to the results of Market News
International’s weekly survey released Monday.
On-year sales of +10.0% are down from the high teens a month ago
with moving averages moving lower for the first time this cycle. These
results suggest the year-over-year rate for nondefense capital goods
shipments, at +12.7% in August, has likely peaked.
Pre-announcements turned mostly favorable in the latest week, a
relief from two weeks when warnings dominated.
The rate of growth is in the high double digits for fabrications
maker TechPrecision (TPCS.OB) which reports a rebound in its core
markets led by clean technology.
Growth is also in the high double digits at Cognex (CGNX) which
makes sensors for factory automation. The company reports
counter-seasonal strength in Europe.
Electrical products maker Actuant (ATU) believes the utility and
commercial construction markets have stabilized at low levels.
Rates of growth out of the electronics group remains very strong.
LeCroy (LCRY) reports strong orders in its October Q1 for oscilloscopes,
up 56% on-year and up 14% sequentially. Electronics assembler Jabil
(JBL) is posting 30% rates of annual growth and describes demand trends
as stable.
Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.
** Market News International New York Newsroom: 212-669-6430 **
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