The prices subindex decreased significantly to 57 (-3.9) because of a massive cutback of US consumer spending which was reflected in new local order (Est’d -5.6). The new local order also caused a dramatic decline in new order that couldn’t be reversed by an increase in new export order (50.6, +1.9).
Due to the dwindling consumer demand, the producers reduced their production (50.2, -1.1) by a smaller magnitude which caused an increase in customers’ inventories (48.3, +0.5) and also reduced some backlog order (42.4, -3). Simultaneously, the producers also reduced their inventories marginally (47.9, -0.3).
Overall, the PMI moved back into a contractionary phase (below 50) by decreasing to 48.7 (-0.5). This contraction also corroborated the recent downward revision in the Q1 2024 GDP (1.3%).
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