The prices decreased to 50.3 (-4.5) because of a previous significant increment.
As the new order increased significantly (50.4, +3.3) which was caused by a significant increase in new export order (48.7, +3.2) and a marginal increase in new local order (Est’d +0.1), the producers had to ramp up their production (48.6, +0.6) and increased the customers’ inventories (48.4, +1.6).
Consequently, the employment (48.1, +3.7), local raw material (Est’d +6.2) and inventories (48.1 (+5.5) had to be increased to fulfil the increased new order.
In conclusion, all these increments boosted the PMI to 48.4 (+1.9). However, the PMI is still in a contractionary phase (under 50) and the US economic growth is not expected to grow much until the PMI is in an expansion phase (above 50).
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