Following Markit's Manufacturing PMI's surge to the highest since March 2015, ISM Manufacturing for December rebounded after two down-months as Prices Paid and New Orders spiked (but employment dropped).
ISM's rebound confirmed PMI's rise...
The Breakdown shows a massive spike in new orders and prices but a drop in employment...
Respondents remain exuberant:
- “Our business is moving higher into the new year. Increased sales are resulting in increased purchases of CapEx and raw materials.” (Chemical Products)
- “Strong international sales — Europe and Australia — versus last two years. U.S. sales continue to grow. Seeing commodity pricing pressures.” (Machinery)
- “We are seeing a ramp-up with companies releasing early 2018 spend now.” (Computer & Electronic Products)
- “Business conditions are good; we are tracking well to our projections for the year.” (Miscellaneous Manufacturing)
- “First quarter 2018 probably will be better than the fourth quarter 2017.” (Fabricated Metal Products)
- “Domestic and international sales on the rise.” (Transportation Equipment)
- “Economy [is] strong and business is strong, yet signals of headwinds in 2018 are persistent.” (Food, Beverage & Tobacco Products)
- “All suppliers are reporting strong business activity and difficulties obtaining qualified employees.” (Paper Products)
- “Demand at this time is strong in the construction part of our business. I think it is due to the impact of the hurricanes and the rebuild and new construction that is required.” (Plastics & Rubber Products)
New Orders soared to their highest level since Jan 2004...
But employment tumbled?