Thursday, May 3, 2018

Quotes of the Day

The Non-Manufacturing (services) Institute for Supply Management survey for April was just released. Like the manufacturing report it was on balance a positive read on the present state of the economy.

Here we'll do what we did yesterday with the April manufacturing survey and highlight the comment section as follows:

Green: Unambiguously Positive
Yellow: Clear signs of inflation brewing (not necessarily a huge negative at this juncture)
Red: Signs of inflation due to recently enacted steel and aluminum tariffs (unambiguously negative)
Red with large bold font: Business plans on hold due to tariff issues (unambiguously negative)



WHAT RESPONDENTS ARE SAYING

"National shortage of Class-A drivers and the increased demand for logistics is resulting in an increase in the cost of goods." (Accommodation & Food Services)

“The trade tensions are impacting purchasing of steel and are causing suppliers to send letters of concern regarding contracted purchases for this year and the future based on these proposed tariffs.” (Construction)

“Economy is humming along. [Activity in] both residential and commercial construction [is] apparent. Agriculture sector seems to be moderating at these commodity price levels. The international trade situation appears to be shifting on a minute-by-minute basis, which has folks nervous.” (Finance & Insurance)

“Continued shortage of drugs and products manufactured in Puerto Rico.” (Health Care & Social Assistance)

“Tax reform windfall continues to help business conditions.” (Management of Companies & Support Services)

“Steel tariffs/232 have impacted our steel costs (pipes, fittings, valves, vessels [and the like]).” (Mining)

“Some indicators of rising transportation costs, which will eventually affect product prices. Trade tariffs will cause unintended consequences on all industries, affecting production and non-production commodities.” (Professional, Scientific & Technical Services)

“Construction activity continues to remain strong in the region, resulting in capacity issues and shortages of labor, materials and subcontractors.” (Public Administration)

“Outlook is very promising as we approach a seasonal uptrend in business.” (Wholesale Trade)

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