New Launch - One Sophia For Sale!

New Launch - One Sophia For Sale!
Please click the advertisement for more information.

Search This Blog

Friday, January 7, 2022

US ISM PMI declined in December 2021 as projected.

 


The prices subindex had decreased to 68.2 (-14.2) which was a significant drop because of easing in the supply disruptions and this was reflected by the drop in the supplier’s deliveries at 64.9 (-7.3) as a lower number indicated faster deliveries.

The producers reduced their inventories (54.7, -2.1) stockpile because they saw reductions in new order (60.4, -1.1), new export order (53.6, -0.4) and new local order (Est’d -0.7).  Consequently, the producers increased their imports (53.8, +1.2) because of easing problems in supply issues such as freight costs and shipments.


The producers increased their employment (54.2, +0.9) to maintain a slightly lower production (59.2, -2.3) to increase their low customers’ inventories (31.7, +6.6).  Therefore, the backlog of order increased to 62.8 (+0.9) as the producers couldn’t fulfill all the new orders due to their low customers’ inventories.


All the above factors caused the PMI to decrease to 58.7 (-2.4) in December 2021 and this decline was being projected in our earlier PMI analysis.


http://sg-stock.blogspot.com/2021/12/ism-pmi-november-indicated-that-us.html


In conclusion, the December PMI indicated that the US economic growth was already over the peak and would experience a continual diminishing marginal GDP growth in the future because of the reduction in the US household saving rate.


No comments: