Missing parameter:
Estimated Local New Orders: New orders - New Export Orders = -3.4 - (-1.8) = -1.6
Estimated Local Material: Inventories - Imports = 3.5 - 2.5 = 1
Although the latest ISM PMI was rather meaningless because it didn't fully factored in Trump's tariffs, we'll still do a simple analysis to perform a health check on the US manufacturing industry that was in a contractionary zone (below 50).
The PMI prices were rising despite the US consumers cutting back on their spendings (Local New Orders were -1.6). The US producers also cut back on their production and employment to prepare for the economic slowdown induced by Trump's tariffs.
All these didn't bode well for the US economic growth because the subcomponents were depicting a stagflation (economic slowdown with rising inflation).
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