What is Macro Pulse?

Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Monday, January 7, 2013

December 2012 ISM Reports

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Manufacturing expanded slightly in December, with the Institute for Supply Management’s (ISM) PMI registering 50.7 percent -- from 49.5 percent in November (50 percent is the breakpoint between contraction and expansion). “Comments from the [respondent] panel this month are mixed, with some indicating a strengthening of demand and others indicating a continuing softness in demand,” observed Bradley Holcomb, chair of ISM’s Manufacturing Business Survey Committee. “Additionally, many respondents express uncertainty about government regulations, taxes and global economics in general as we approach 2013.”
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The service sector report was even more upbeat. The non-manufacturing index (now known simply as the “NMI”) registered 56.1 percent in December, 1.4 percentage point higher than November’s 54.7 percent -- indicating faster growth. “Respondents' comments remain mixed,” said Anthony Nieves, chair of ISM’s Non-manufacturing Business Survey Committee, “and are mostly positive about business conditions and the economy.”
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Wood Products reported expanded activity, although higher employment and backlogged orders were the only contributing categories. Paper Products’ expansion, on the other hand, was supported from a majority of sub-indices. Overall activity expanded in Real Estate, but the change was limited to inventories. Construction exhibited growth in new, backlogged and export orders; and employment and inventories. Ag & Forestry also grew, but only in new import and export orders.
Prices increased for a variety of commodities, including pine, spruce and treated lumber; corrugated boxes/packaging; and caustic soda. Gasoline, diesel fuel and natural gas were down in price. No relevant commodities were in short supply.
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.

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