Production and Prices plunged holding Milwaukee's ISM near 2-year lows...
"After ISM Milwaukee disappointed, missing for the 8th month of the last 9
hovering at 2 year lows with production and prices plunging,
Chicago PMI slightly disappointing.
...there is little to no momentum in any 'recovery'
stemming from a Q2 bounce.
Why would Warren Buffett not want his readers
to understand what's actually happening in our economy?
Weakness under the surface is broad
and as purchasers warned "failure of New Orders to materialize
"within the next few weeks"
could put firms at risk of being over-inventoried
and curtail producton levels."
Could it be,
that Warren Buffett would prefer to invest
when as many others as possible don't know what's happening,
or vice versa?
Perhaps most worrying though
is the 4th consecutive contraction in employment...
But then Chicago PMI hit...
And underlying factors were weak...
MNI CHICAGO REPORT: BAROMETER 54.4 AUG VS 54.7 JUL SEASADJ
MNI CHICAGO: SUPPLIER DELIVERIES RISE TO HIGHEST SINCE MARCH
MNI CHICAGO: EMPLOYMENT UP BUT IN CONTRACTION FOR 4TH MONTH
MNI CHICAGO: PRICES PAID FALL BACK BELOW 50
MNI CHICAGO: INVENTORIES COMPONENT HIGHEST SINCE NOV 2014
MNI CHICAGO: ORDER BACKLOGS CONTRACT AT FASTER RATE
MNI CHICAGO: PRODUCTION AND NEW ORDERS EASE SLIGHTLY
Some purchasers reported enough work
to keep their facilities "busy"
but said that there were a lot of small orders with large orders lacking.
Part of the resilience in Production and New Orders
was due to stock growth as companies built inventories
at the fastest pace since November 2014.
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