After bouncing dramatically in June (the biggest surprise beat in over 3 years) - on the back of 'hope' surgiung to 6-month highs - July data continued to improve marginally but missed expectations -4.6 vs -3.5 exp). On the bright side New Orders inched into positive territory (although inventories are surging) but prices received tumbled, wages dropped, and employment fell (as hours worked rose). The biggest driver, once again, of the headline rise was 'hope' as the outlook rose to 18.8 - the highest since August.
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As Hope over reality is averaging near 6 year highs...
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Full Breakdown...
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As one responmdent noted,
It is very odd for us to be so slow this time of year. June had decent billing but really low incoming orders, and July is starting out even worse than June on incoming orders.
Billing will be much lower as well.
We are optimistic that last quarter of the year will be much busier as it traditionally is our best quarter of each calendar year.
Charts: Bloomberg
