Did you see the CPM numbers this morn? Under 50 is rotten to the core, and we are back to the bad news isn't really bad news scenario in this market. The 10 year yield is under 4.5%
Just amazing what is going on.
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Chicago Purchasing Managers' Index Falls to 49.9
A gauge of business activity unexpectedly showed a contraction in November as production and orders at U.S. companies weakened, according to a Chicago-based purchasing managers' group.
The National Association of Purchasing Management-Chicago said today its business barometer fell to 49.9 this month, the lowest since April 2003, from 53.5 in October. A reading lower than 50 signals contraction.
American businesses are curbing investment in new machinery and equipment and reducing stockpiles as they brace for a slowdown in consumer spending. Today's report may add to concern growth is slowing sharply as the housing slump ripples through the economy.
``Companies are growing more cautious because of uncertainty about demand,'' Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio, said before the report. ``They're starting to think defensively. They have to go through production adjustments to rebalance inventories.''
Economists had expected the index to rise to 54.4, based on the median of 56 forecasts in a Bloomberg News survey. Estimates ranged from 49 to 58.
The Chicago group surveys companies with U.S. and worldwide operations. Any group member, even those not located in the Midwest, can respond. For that reason, some economists watch the Chicago index for an early reading on the outlook for U.S. manufacturing, which accounts for 12 percent of the economy.
The production index fell to 54.4, the lowest since April 2003, from 59.2. The new orders index fell to 52.0, the lowest since August 2005, from 54.1.
Order Backlogs
The index of order backlogs decreased to 45.9 from 47.5. The inventories index decreased to 57.7 from 67.2.
The employment index fell to 49.4 this month from 57 in October, which was the highest since April 2005.
The measure of delivery times fell to 43.0 from 54.1. An index of prices paid for raw materials declined to 60.2 from last month's 62.5.
The Commerce Department yesterday raised its estimate for the annual pace of economic growth in the third quarter to 2.2 percent from 1.6 percent on an increase in business inventories and improvement in the trade deficit. Growth was still the slowest this year. |
