Missing parameter:
Estimated Local New Orders: New orders - New Export Orders = (-1.3) - 0.10 = -1.4
Estimated Local Material: Inventories - Imports = 1.2 - 4.9 = -3.7
The PMI has decreased to 52.4 (-0.2) because of declines in new orders (-1.3) and local new orders (est'd -1.4). In short, this meant that the US consumption was weakening.
Due to the declines in orders, the production fell (-2.4), customers' inventories rose (+0.1) marginally, and inventories climbed (+1.2).
Aa the production and orders declined, backlog of orders increased. The only shocking element was the huge spike in prices (+11.5) and this would mean that the US inflation was rearing its head again.
Although this PMI is still above 50, it denotes a deeper problem which is the price is rising in the face of weakening consumer spending.
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