ISM Commodities Survey: More Price Declines Ahead

In terms of economic activity, the month of December isn't starting off on a very good note. First, it was China. Then it was Russia. And now the US. In addition to falling to its weakest level since 1982, today's ISM report on Manufacturing signaled that the recent string of negative readings in the CPI is likely to continue. In each month's ISM survey, respondents are asked which commodities have seen price increases over the last month and which ones have seen decreases. In this month's ISM report, respondents saw increases in the prices of only three commodities, while eighteen saw decreases. The net reading of -15 was the weakest monthly reading since December 2001, and brought the three month average down to its lowest level since March 2002.