ISM; Construction Spending; Auto Sales

Summary: Even paint sales are down, while Auto & Truck Sales estimated to be the worst since early 90's, were far worse.

Construction spending declines for the 5th straight month with YOY SFR spending including improvements -33%.

The emasculated economy is hobbled as ISM shows manufacturing declining for 3 of 4 months while new orders post a 4th consecutive decline.

Connect the dots... Sherwin-Williams Co., the largest U.S. paint retailer,

last week reduced its Q1 and full-year earnings forecasts because of falling domestic sales and surging raw-material (petroleum) costs.

Auto & Truck Sales Mar

Analysts ESTIMATED U.S. car and light truck sales to drop more than 6% in March from a year earlier.

March sales at GM were seen down between 8 and 9%, with Ford sales down as much as 10% and sales at Chrysler off by as much as 13%.

Toyota, now the No. 2 player in the U.S. market, is likely to report its sales have fallen as much as 6%,

while Nissan is seen on track for declines of up to 3%. Honda could be the only major automaker to post sales gains in March.

And now you better sit down for the real numbers....

GM -19%; (trucks -22%, cars -14%); Ford -14% (trucks -17%; cars -9.6%); Toyota -10% (trucks -14%; cars -7.3%).

Even Honda sales declined -3.2%. With 33% less construction spending, notice the drop in light duty truck sales.

General Motors and Ford shares have dropped 24% and 16% respectively since the start of the year...

while the emasculation of durable economic activity continues with Q1 North American Automobile & Truck Production -17%.

Construction Spending Feb -0.3% vs prior -1% Full Report

Inside the number: prior revised up from -1.7%. YOY -3.5%; YTD -2.6%. Residential -0.9%, YOY -18.6%, YTD -19.6%;

Total Private -0.5%, YOY -7.1%, YTD -5.8%; Private Residential -0.9%, YOY -18.8%, YTD -19.9%.

Commercial Non Residential YOY Public -13.1%; State & Local -11.7%; Federal -14.3%; Private +2.1%

Private Multi unit -0.3%; YOY -18.5%; SFR (including improvements) -5.7%; YOY -33.6%.

ISM Index Mar 48.6 vs prior 48.3 Full Report

Inside the number: 2nd straight and 3 of 4 months in contraction.

New orders 46.5 vs 49.1, production 48.7 vs 50.7, employment 49.2 vs 46 and inventories 44.9 vs 45.4 contracting, supplier deliveries 53.6 vs 50.1 slowing.

The 4th straight decline in new orders and the lowest since Oct 2001. Backlogs continue to erode 47.5 vs 45.

Heavier cost pressures with prices paid rising 83.5 vs 75.5.

"Automotive demand continues to decline." (Fabricated Metal Products)
"Business is still cautiously optimistic." (Machinery)
"High oil prices and material shortages are becoming a real challenge to deal with in day-to-day operations." (Paper Products)
"European business continues robust." (Primary Metals)
"Business continues to be down by 20 percent over the past four months." (Furniture & Related Products)

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