The bulk of the revision was due to a larger than previously expected trade deficit. The NAPM composite index fell for the fourth straight month in November . At 47.7, the index implies that the manufacturing sector is contracting. Of the sub-indexes, all were below 50.0 except for imports, which rose to 53.2 implying that imports are on the rise, and prices paid. The NAPM prices paid index now stands at 56.6, but it is down significantly from the earlier high of roughly 80.
Pricing power is very weak in the manufacturing sector.
Construction spending increased for the third straight month with both residential and non-residential spending rising . Single-family construction declined again in October. Economic reports released this week are expected to again point to a slowing economy. The highlight will be the employment report that is expected to show continued moderation in the labor market and a slightly higher unemployment rate. The employment report will likely tip market consensus one way or the other regarding whether or not the Fed will adopt a neutral bias following the December 19th FOMC meeting.