This is a poor report and the worst since June 2009. Needless to say, that wasn't a great time. As you can see on the chart, it dipped narrowly below the early-2016 low, which came as energy and investment evaporated.
The US dollar is getting stung by this data and risk trades are retreating.
Comments in the report:
"Second month in a row in which shipments have outpaced new orders." (Computer & Electronic Products)
"Continued softening in the global
automotive market. Trade-war impacts also have localized effects,
particularly in select export markets. Seeing warehouses filling again
after what appeared to be a short reduction of demand." (Chemical
Products)
"Business outlook remains cautious. Orders
seem to be decreasing, but luckily not as sharp of a decrease as we were
expecting." (Transportation Equipment)
"Chinese tariffs going up are hurting our
business. Most of the materials are not made in the U.S. and made only
in China." (Food, Beverage & Tobacco Products)
"General market is slowing even more than a normal fourth-quarter slowdown." (Fabricated Metal Products)
"Demand softening on some product lines, backlogs have reduced, and dealer inventories are growing." (Machinery)
"Business has been flat for us. Year-over-year growth has slowed dramatically." (Miscellaneous Manufacturing)
"We have seen a reduction in sales orders
and, therefore, a lower demand for products we order. We have also
reduced our workforce by 10 percent." (Plastics & Rubber Products)
"Incoming sales are sluggish for this time of year." (Furniture & Related Products)
