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ISM Manufacturing Beats; Hovers Near 8-Month Lows

Submitted by Tyler Durden on 03/03/2014 11:08 -0400

Following last month's massive miss on US manufacturing, ISM modestly beat excpectations today (53.2 vs 52.3 exp.) but remains near 8 months lows. This is still the largest 2-month drop since August 2011. New orders rose but production plunged and employment was unchanged as inventories surged. Respondents fell back on blaming the weather with "conservative optimism" a standout. In addition, construction spending beat expectations in January (and December) so it seems the weather did not affect that?

ISM Manufacturing bounced off January's collapse...

and the breakdown:

What the respondents said:

"Cold weather is having a negative impact on our business (garment). Orders are down." (Apparel, Leather & Allied Products)
"Continue to have trouble finding qualified CNC machinists. Desperately trying to hire CNC programmers." (Fabricated Metal Products)
"Bad weather hampering logistics across the country." (Petroleum & Coal Products)
"Higher than normal demand for this time of year." (Transportation Equipment)
"Very strong month in terms of growth." (Computer & Electronic Products)
"Many raw material disruptions due to weather and back-ups at the ports." (Chemical Products)
"We are seeing competition heat-up this year." (Plastics & Rubber Products)
"Slow January, but February orders are picking-up." (Food, Beverage & Tobacco Products)
"Conservative optimism re-kindling. Steady as it goes." (Machinery)
"Business continues to be stronger. Was at the KBIS/IBS show last week, and the feeling was much the same. Good last year and this year shows great promise." (Furniture & Related Products)