ISM & Construction Spending

Summary: Headline reads ISM & Construction Spending surprise, both above expectation. Under the sheets...

Creator of 80% of jobs since 2001: Private SFR construction spending declines 4.4% in one month and 37.5% since last year.

ISM Manufacturing's 4th consecutive month of negative "growth" with employment worsening; prices rising and backlogs vanishing.

Construction Spending Apr -0.4% vs -1.1% Full Report

Inside the number: Yoy -3.9%; Residential -2.1%; Yoy -20.8%;

Private Construction -0.5%; Yoy -7.2%; Private Residential -2.3%; Yoy -21%; SFR -4.4%; Yoy -37.5%

ISM Index May 49.6 vs 48.6 Full Report

Inside the number: Under 50 means in contraction. New orders 49.7 vs 46.5; Production 51.2 vs 49.1;

Employment 45.5 vs 45.4; Backlog shrinking 46 vs 51.5; Prices soaring 87 vs 84.5

"Manufacturers find themselves caught between rising costs and weakening demand in many industries."

"Higher prices, tighter supply, longer lead times, shrinking inventory (same as last month)." (Transportation Equipment)
"Just two months ago we were cautiously optimistic, but now sales inquiries are coming in at a snail's pace." (Machinery)
"Ethanol-driven agricultural commodity increases continue to pose major hurdles." (Food, Beverage & Tobacco Products)
"Pricing is skyrocketing for chemicals." (Chemical Products)
"Current forecast flat for Q2 through Q4 after dip in Q1." (Computer & Electronic Products)

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