US Manufacturing PMI Weakest Since COVID-Lockdown Crisis Peak
Following a further dip in China’s Manufacturing PMI overnight, the final print for S&P Global’s US Manufacturing PMI matched the flash print of 46.2 (down from the November 47.7 print)…
The latest data signaled the fastest decline in operating conditions since May 2020, and was among the sharpest since 2009.
“The manufacturing sector posted a weak performance as 2022 was brought to a close, as output and new orders contracted at sharper rates. Demand for goods dwindled as domestic orders and export sales dropped. Muted demand conditions also led to downward adjustments of stock holdings, as excess inventories built earlier in the year were depleted in lieu of further spending on inputs. With the exception of the initial pandemic period, stocks of purchases fell at the steepest rate since 2009.
“Concerns regarding the outlook for demand weighed on hiring decisions. Job creation was only slight, and largely linked to skilled hires, as firms displayed caution.
“Sinking demand for inputs and greater availability of materials at suppliers led to a further easing of inflationary pressures. In fact, the rate of input price inflation fell below the series trend. Selling price hikes also eased, albeit still rising steeply. Slower upticks in inflation signal the impact of Fed policy on prices, but growing uncertainty and tumbling demand suggest challenges for manufacturers will roll over into the new year.“
All of which confirms the recessionary warnings from the Philly Fed…
Certainly doesn’t look very ‘soft landing’-like?
Is this what Chair Powell is looking for?
Tue, 01/03/2023 – 09:50