01/03/2019 (Thu) 15:39:49
Yesterday, when Markit reported that the US manufacturing PMI tumbled to a 15 month low, we were wondering how much longer the "other" PMI can continue to defy gravity by printing ridiculously high numbers month after month. The answer, it turns out, was about 24 hours, because moments ago the Institute for Supply Management reported that the December ISM plunged from 59.3 to 54.1 - precisely where the PMI print suggested it should - which was the lowest print in the Mfg ISM series since November 2016...
... and the biggest one month drop going back to the financial crisis, when in October 2008 it dropped by 9 points.
Printing just days after both Chinese manufacturing surveys printed in contraction territory, spooking markets, today's ISM report was a disaster with virtually every subindex tumbling:
New orders fell to 51.1 vs 62.1
Employment fell to 56.2 vs 58.4
Supplier deliveries fell to 57.5 vs 62.5
Inventories fell to 51.2 vs 52.9
Customer inventories rose to 41.7 vs 41.5
Prices paid fell to 54.9 vs 60.7
Backlog of orders fell to 50.0 vs 56.4
New export orders rose to 52.8 vs 52.2
Imports fell to 52.7 vs 53.6
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