Strong Manufacturing- Weak Construction

Forgive us if our schizophrenia is showing. Precision Machined Products shops serve Manufacturing and Construction markets.

Good News - Bad News.

According to the latest ISM Purchasing Managers Report, the US manufacturing sector grew at its fastest pace in almost seven years in January.

The ISM Manufacturing rose to 60.8, the highest reading we can recall  since we started paying attentionto this index. It hasn’t been this high since May 2004. With success comes a new set of problems-according to the ISM report, “No commodities are reported down in price.”

Aluminum, Brass,  Copper, Stainless Steel, Steel, and Steel Surcharges all reported “Up in Price.”

Now for the not so good news.

On Tuesday, the US Commerce Department posted its latest figures on construction spending.

"We are here..."

According to the report, US construction spending dropped to an annual rate of approximately $787.9 Billion- the lowest since July 2000.

Another data point confirming the “lost decade.”

Good News Bad News Photo Credit

Abandoned Construction Photo credit

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s