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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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The May ISM Manufacturing report showed a significant squeeze in manufacturing output, which is coming together with a historic drop in client inventories.
- The Backlog of Orders index hit a record (since the series began in 1993) 70.6, indicating per the ISM "11 months of new-order intakes more than fully offsetting production outputs.". Five of the Six "big industry sectors" reported a strong increase in backlogs, and no industry reported lower backlogs.
- Meanwhile, the Customers' Inventories index slipped to a new record low 28.0 (since the series began in 1997), the 3rd straight month of record lows - with none of the 18 industries reporting higher customers' inventories. This figure is considered "a positive for future production growth", per the ISM.
- Taken together, though, significant demand in restocking by customers is meeting large backlogs in orders, suggesting that bottlenecks.
- As ING pointed out in May, this combination looks inflationary, with manufacturers' pricing power arguably never higher.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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