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Chicago PMI Prints At Multi-Decade High At 68.8 On Expectations Of 64.5, "Steel Prices Are Going Crazy"
Chicago PMI Surges again, hitting 68.8 on expectations of 64.5, compared to the lower revised 66.8. And as recently has become trading, the only indicator everyone is looking at is the Price Paid (i.e., the margin collapse metric) which came at 81.7 compared to 78 previously. The key comment from the survey panel: "Steel prices are going crazy." Nuff said.
Report Highlights, and try not to laugh...
Business Activity:
- Prices Paid, at 81.7, compared to 78.0 previously, indicated increased inflation, increasing to the highest level since July 2008
- Employment strengthened to a height not seen since May 1984
- New Order increased to the highest point since December 1983
- Production improved with New Order to the strongest level since 2004
Buying Policy:
- Lead times reported for MRO supplies plummeted.
Full comments from the report:
1. Lots of commodities price rising - steel, tin, aluminum, paper. Has not impacted sales though - have had large increase in orders.
2. Commodity inflation hurting profits, no pricing power with our customers.
3. Prices seem to be heating up, many suppliers are knocking on the door right now.
4. Some suppliers are holding prices to remain competitive, but others who have little to no competition in their sector are talking some significant increases in 2011. We are negotiating to keep those increases to a minimum.
5. Steel prices are going crazy
6. Business has increased mostly overseas higher prices, especially copper will kill us figure our cost has increased 40% same as oil too many speculators buying
7. Unfortunately the magic allure of a new year has not brought about improved service and pricing. Suppliers are continuing with pressures of increased pricing, decreased service levels and extended lead times.
8. Local foreclosures continue unabated. Small to medium sized business lending picking up slightly but remains very competitive due to lack of credit-worthiness of many of those businesses.
9. Business continues to improve. We have concerns about available experienced personnel to hire as well as pressures on capacity.
10. Business remains steady, orders are firm from month to month, back log remains solid…
11. Orders continue to come in spurts. No orders for 3 or 4 weeks then 3 or 4 in 1 week. The important thing is that the backlog is growing. The quote action is continuing strong.
12. The company for which I work overall revenues has increased by 34%. We are sheet metal fabrication job shop, customers are predominantly OEM Equipment manufacturers and Packaging.
13. Very good start to 2011 !
And we all have Ben Bernanke's revolutionary policy to thank for 13 !
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COLD STEEL
No, plastics, my son.
Naaah.
CRKT, Ka-Bar, Ontario, or maybe Queen Cutlery. Say no to dopey videos styled like WWF shows.
Oh and how come there was 'market talk of a better than expected' number before the number came out???
1984
Orwell would be blushing, no doubt.
Tell me lies, tell me sweet little lies.
"Employment strengthened to a height not seen since May 1984"
WHAT THE FUCK??????????
Remember this is a diffusion index...the level of the index means nothing as to the level of actual production.
Seems like every single metric points to accelerating inflation except the one Benron is watching.
A Harry Wanger moment
If you look at the situation in Queensland, getting more dire by the day and a huge cyclone bearing down as we speak, the "coal effect' begins to show it's face in the steel market.
And the Queensland effect on the BDI.
Supply diruptions are going to make all stocks (material ones that is), rocket.
The trade (most trade) will go physical as supply-chain disruptions increase. Hoarding, local speculation....
Deflation in the "real" world? I really doubt it.
ORI
http://aadivaahan.wordpress.com/2010/12/24/where-do-we-fit/
Steel? What is it good for?
Swords. Cannons. Guns. Trucks. Tanks. Ships.
Can't think of anything else.
Barbed wire to keep the sheeple fenced off from the banksters
Missiles, bombs, submarines.
Missiles use aluminum. Bombs, steel is old school. Subs use titanium.
Shovels.
Pitchforks.
"Pitchfork ready jobs"™
I'm long handcuffs.
They must be making the handcuffs in China b/c they aren't being made here....
http://3.bp.blogspot.com/_m5i6pLhlNWU/TUbtNlJQ5SI/AAAAAAAAD_I/BhePxTLb6l...
nice solid core for rubber bullets.
You can't eat that stuff?
ZIRP means US$ no store of value = hyperinflation.
Rally on, POMO on...all is well...Rahming speed!!!
Comment #6 is quite striking as well.
What I cannot understand is how their hiring is so good with the other numbers that come out. Who's lying the least?
Copper is killing them...JPMorgan has lots of control of copper price.
Oligarchs are heavily in this game too...
Aussie ports are shutdown again due to the typhoon, how much longer before coal is in short supply?
“The depression has ended.” – Dr. Julius Klein, Assistant Secretary of Commerce, June 9, 1931
should read Highest Prices Since "1984"
Chicago PMI huh..........must be all the mid-west 99ers out buying new cars...........
Ummm...are they showing results for the USA??????????
Is this a Hollywood script or data from another planet?
Is this like hanging chads in Florida where they only counted the ones they want to count?
Gosh, I am confused...don't 7,8,9 and 10 contradict each other just a wee bit.
Dad always says the recession isn't really done until there're layoffs at the mill. Over the last 30 years, that's by and large been true, at least from a working class perspective.