Amid Manufacturing Downshift, Early Signs of Price Breaks

Source: Economics Group of Wells Fargo Bank, N.A.Summary Orders are falling and manufacturers are running out of backlogs to keep busy. Supply problems are far from fixed, but with some commodities no longer in short supply, overall prices are falling for the first time since May 2020. Employment is at breakeven 50.0, and production edged higher. Orders Drying Up, Some Relief for Prices Activity in the manufacturing sector slowed to a crawl in October with the ISM index coming in at just 50.2 (chart). The most consistent theme in this month’s report is the weakening in orders. Respondent comments point to customer orders being canceled in the chemical products space, slowing in the transportation equipment space, and that a “growing threat of recession is making many customers slow orders substantially” for food and beverage products companies. READ FULL ARTICLE>>