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US PMI Drops, Misses By Most In 7 Months, Weather Implicated Again
The 2nd class data point, that quickly became the darling of the algo pumpers when it beat expectations by a record last month, has tumbled back to a less exuberant reality and missed expectations by the most in 7 months. Printing at 55.5 (vs 56.0 exp.) the index is still in expansion mode but factory jobs and factory orders sub-indices both fell...
- *MARKIT U.S. FACTORY ORDERS INDEX DECLINES TO 58.1 FROM 59.6
- *MARKIT U.S. FACTORY JOBS INDEX GREW AT SLOWER PACE IN MARCH
From the report:
March data indicated that the U.S. manufacturing sector remained on a solid growth footing, with output levels and new business volumes both rising sharply. The latest increase in new work was slower than in the previous month, but still the second-fastest since May 2010. Meanwhile, the rate of production growth was little-changed from the near three-year high recorded in February. Survey respondents commented on a combination of improving underlying demand and a catch-up effect following the weather-related slowdown seen earlier in the year.
And the commentary which this time "blames" the improvement in the weather:
March data indicated that the U.S. manufacturing sector remained on a solid growth footing, with output levels and new business volumes both rising sharply. The latest increase in new work was slower than in the previous month, but still the second-fastest since May 2010. Meanwhile, the rate of production growth was little-changed from the near three-year high recorded in February. Survey respondents commented on a combination of improving underlying demand and a catch-up effect following the weather-related slowdown seen earlier in the year.
Commenting on the final PMI data, Chris Williamson, Chief Economist at Markit said:
“The fall in the composite Manufacturing PMI masks the ongoing resilience of output, new orders and employment growth, all of which continued to rise at historically strong rates in March. That’s because the PMI also includes a measure of supplier delivery times, which dragged the PMI down but only because deliveries were quicker as a result of improved weather.
“The survey indicates that factory output growth has picked up again after the weather-related disruptions seen at the start of the year, presenting policymakers with an encouraging picture of a healthy goods-producing sector that is generating jobs at the rate of 15-20,000 per month.
“With warehouse inventories falling, in many cases due to sales outstripping production, factories look set to continue to expand capacity in coming months, taking on more staff and boosting business investment.”
So... bad weather last month led to a record high PMI, and the weather improvement in March led to a decline. Got it.
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Sooooo.... Bullish?
Of course. All time ever high bullish.
And...rampathon!
DavidC
All data is bullish, regardless of value.
Is the fact that it is produced an indication that it is sold? This is VERY cornfusing.
Watch those typos Fielding...
All data is bullshit, regardless of value
There, fixed.
good reason to go parabolic!
The real reason markets are rigged is that because markets go up on bad news, good news and no news. That is rigged.
When your only purpose in life is to make money on skimming, good ... bad ... are irrelvant.
If weather is indeed the problem, perhaps the government would kindly stop flying all those jets over my house. On almost every clear day jets fly over releasing some sort of contrail. Obviously, someone is attempting to cool the planet.
But, but after five years Fartaroma says there's still money on the sidelines.
“The fall in the composite Manufacturing PMI masks the ongoing resilience of output, new orders and employment growth.."
Snigger.
There ya go ladies and gentleman... ALL TIME HIGHS! BUYBUYBUY!
are we there yet?
Get up and put on my rose tinted glasses, done.
What a beautiful world accountants create.
Do not blame this on accountants. We follow the rules
If the numbers beat estimates but fall yoy, that's the headline. If the numbers fall yoy but beat sandbag estimates, that's the headline. If both miss, it's the weather. It's all bullish, ...I mean...bullshit!
weeee - gay bob said the market is not really rigged, so i just pumped another 5k into my IRA for 2013 taxes
Wow. Listening to the cheerleaders on Bloomberg one would think the PMI was great news. Man these status quo bootlickers have a hanging coming...