US November ISM manufacturing PMI 46.7 vs 47.6 expected

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US November ISM manufacturing PMI 46.7 vs 47.6 expected

• Prior report 46.7
• Prices paid 49.9 vs 45.1 prior
• Employment 45.8 vs    46.8 prior
• New orders    48.3 vs 45.5 prior
• Inventories   44.8 vs 43.3 prior
• Production 48.5   vs 50.4 prior

The US dollar was at the best levels of the day against the euro and pound before this report but it's slumped since. The market was expecting something better than the 'expected' number here because of a strong regional PMI yesterday.

Comments in the report from respondents:

• "Economy appears to be slowing dramatically. Customer orders are
  pushing out, and all efforts are being made to right-size inventory
  levels, both to mitigate carrying costs on pushed-out orders and to load
   up on inventory where costs are exploding, like cold-rolled steel."
  [Computer & Electronic Products]
• "Starting to feel softening in the economy, with labor still a
  challenge to backfill critical roles. The 2024 forecast looks
  challenging, specially from a cost perspective." [Chemical Products]
• "Nearly all microchip supply issues have been resolved, finally
  bringing an end to the three-year chip shortage. Material prices are
  remaining relatively flat. Supply chain issues continue in several
  areas, resulting from difficulties during the United Auto Workers (UAW)
  strike." [Transportation Equipment]
• "Our executives have requested that we bring down inventory levels
  considerably, and it has started causing customer shortages. Both
  finished goods, and low inventories of raw and packing materials are
  creating issues in fulfilling customer demand, and in some cases causing
   serious (production) delays." [Food, Beverage & Tobacco Products]
• "The end of the major construction season and an early pullback in
  customer capital expenditures purchases have resulted in a lower backlog
   in the fourth quarter." [Machinery]
• "Automotive sales still impacted by UAW strike. Still waiting for
  orders to come in, and we also need to work down inventory levels that
  increased during the strike period. This will most likely happen in
  December." [Fabricated Metal Products]
• "Customer orders have pushed into the first quarter of 2024,
  resulting in inflated end-of-year inventory." [Miscellaneous
  Manufacturing]
• "(Our situation is) good but guarded, as next year is hard to
  predict. There are undertones of uncertainty in the market and the
  impact of inflation on maintenance and project costs has become
  apparent." [Nonmetallic Mineral Products]
• "Customers back online after the UAW strike. Consuming inventory
  that was built as a strike bank. Still (having) issues with hiring
  quality candidates for both hourly and salaried positions. Current
  inventory levels are too high, but the order book remains strong."
  [Primary Metals]
• "Elevated financing costs have dampened demand for residential
  investment. Our business has been negatively impacted through reduced
  new orders for our products and services. We are purchasing less for
  production and finished goods inventories." [Wood Products]

Generally dour.

                This article was written by Adam Button at www.forexlive.com.

Source: US November ISM manufacturing PMI 46.7 vs 47.6 expected

forexlive.com