Pretty bad payroll number that is likely to be enough to swing the Fed into action-at least Operation Twist, if not QE3
ISM yesterday showed production below 50, with other components holding up better. Anecdotes also show mixed results.
Possible that August was a temporary downturn, but Fed unlikely to take a chance on that and sit idle.
WHAT RESPONDENTS ARE SAYING…
“Earlier chemical price increases are beginning to soften.” (Chemical Products)
“Business is soft, confidence is down, and we are cutting inventory and expenses.” (Machinery)
“Exports continue to be strong — domestic weak.” (Computer & Electronic Products)
“Domestic sales are showing small improvements. International sales are showing larger improvements.” (Fabricated Metal Products)
“Demand remains constant and strong.” (Paper Products)
“Current headwinds in the national and international economic environment have increased uncertainty, and are affecting our customers’ willingness to commit to high-dollar equipment purchases.” (Transportation Equipment)
“We continue to post solid numbers, but the situation seems tenuous.” (Plastics & Rubber Products)
“Automotive business (represents 52 percent of our sales portfolio) continues to be strong. Core business has pulled back slightly.” (Apparel, Leather & Allied Products)
“Sales continue to be sluggish.” (Furniture & Related Products)