Wow, that one stings the nostrils
Friday’s September ISM manufacturing report should be intriguing.
Similar to last month, the September regional manufacturing reports from the various Fed districts, frankly, have stunk. There’s been spotty improvements, at best, in some readings, but weak reports overall.
If you recall, those lame regional gauges led to tempered expectations for August ISM manufacturing, which then inexplicably surprised on the upside. That eased double-dip concerns and helped spark the rally that’s taken stocks back to their highest levels since May.
The latest dud manufacturing report comes from the Richmond Fed, with the headline September reading actually slumping into contraction territory. This one’s awful, citizens, with everything tumbling (except future expectations) sharply. The headline -2 reading is the lowest since January, and second-lowest since April 2009. Lowlights include:
Shipments: -4 from 11 in August
Volume of orders: goose egg from 10
Capacity utilization: goose egg from 14
Average workweek: another goose egg from 14 (was 16 in July)
Wages: 8 from 13
All ugly, but Richmond Fed puts on a brave face on this stinker, with the following headline:
“Manufacturing Activity Pulled Back in September, But Expectations Upbeat”
Nice take. Feel better now?