Highest reading since October 2024
Business activity index 54.4 vs 52.6 priorEmployment 52.0 vs 48.9New orders57.9 vs 52.9 priorPrices paid 64.3 vs 65.4 priorSupplier deliveries51.8 vs 54.1 priorInventories54.1 vs 54.8 priorBacklog of orders 42.6 vs 49.1 priorNew export orders 54.2 vs 48.7 priorImports 50.3 vs 48.9 priorInventory sentiment 54.1 54.8 prior
Justin wrote a great preview for this report earlier. There has been some recovery in this report since September but it’s generally been rangebound over the past two years.
Comments in the report:
“We continue to experience higher prices, primarily due to the
impact of the administration’s trade and tariff policies. We are
disproportionately impacted by importing seafood from Southeast Asia and
coffee from South America.” [Accommodation & Food Services]“In general, business is flat. Value brands are still experiencing
higher demand. But premium brands struggle to maintain market share.”
[Agriculture, Forestry, Fishing & Hunting]“Rising labor and staffing shortages across facilities and auxiliary
services, increasing regulatory and compliance requirements within the
state, continued inflationary pressure on supplies and contracted
services, ongoing supply-chain variability for specialized equipment and
materials, heightened sustainability expectations and state-led
environmental initiatives, fluctuations in enrollment affecting
institutional budgets and purchasing volumes, and increased competition
and pricing volatility in the regional supplier market.” [Educational
Services]“Overall, business is healthy, most of our purchasing is staying
consistent, and we are renewing most contracts as we head into the new
year.” [Finance & Insurance]“Flu cases on the rise; the vaccine is not of much help this year.
Respiratory equipment and supplies are seeing a surge in demand.”
[Health Care & Social Assistance]“Annual pricing markups from key service and data providers are
higher than they’ve been for many years — gradually drives costs up.”
[Information]“Continuing uncertainty and apprehension regarding tariffs and the resulting impact on pricing.” [Public Administration]“We expect flat national home prices in 2026, with a forecast of a
0.5-percent increase and a plausible range from a decrease of 3.6
percent to a gain of 4.6 percent. Many metro areas across the country
are already posting year-over-year declines, making 2026 the most likely
year since 2010 for a modest national price dip.” [Real Estate, Rental
& Leasing]“High business activity due to the holiday season.” [Transportation & Warehousing]“Year-over-year growth has been coming down for the last three
months. Most likely, the government shutdown was a contributor.”
[Wholesale Trade]
This article was written by Adam Button at investinglive.com.