• Prior was 52.8

• Employment 53.9 vs 52.3 prior
• New orders 52.2 vs 51.3 prior
• Prices paid 62.6 vs 60.4 prior
• Business activity 54.4 vs 54.5 prior
• Supplier deliveries 53.4 vs 53.0 prior
• Inventories 50.6 vs 47.5 prior
• Backlog of orders 51.7 vs 44.8 prior
• New export orders 52.1 vs 52.0 prior
• Imports 49.6 vs 49.8 prior
• Inventory sentiment 54.7 vs 53.5 prior

This is a pleasant surprise and runs against the recent trend of soft survey data.

Comments in the report highlight tariffs, DOGE and weather.

• “Tariff actions have created chaos in information and pricing measures, forecasting and forward buys, which may artificially inflate purchases to be followed by a drop off.” [Accommodation & Food Services]
• “There is great uncertainty about future business activity due to the risk of tariffs and other potential government actions.” [Agriculture, Forestry, Fishing & Hunting]
• “Implementation of tariffs will have a significant cost impact to our projects. The majority of the capital equipment we purchase is not manufactured in the U.S., or components that make the equipment come from overseas manufacturers. We are also seeing U.S. prices already rise in anticipation, which is a similar reaction of the U.S. suppliers when the previous tariffs were introduced.” [Construction]
• “The university is still digesting the current potential changes with federal assistance programs.” [Educational Services]
• “The last month has brought multiple weather events. Some locations were closed or delayed opening. Norovirus and other viruses have resulted in busy emergency departments and urgent care facilities.” [Health Care & Social Assistance]
• “Tariffs are going to have a ripple down effect that could severely harm our business.” [Information]
• “Concern regarding tariffs. No impact yet.” [Management of Companies & Support Services]
• “Business seemed to pop after the election, but uncertainty after the election seemed to take the ‘wind out of our sales,’ with uncertainty again increasing.” [Professional, Scientific & Technical Services]
• “Observed some contracting uncertainty earlier in the month relating to federal funding freeze, but operations have largely normalized as of today.” [Public Administration]
• “Weather has been terrible. When it is not cold and snowy, it seems to be raining. I think that is the biggest hurdle at the moment. The tariff situation has created some uncertainty in the lumber market, but without demand the price of lumber should not move very much. Affordability and high interest rates are still headwinds, but sentiment seems to be good.” [Wholesale Trade]

This article was written by Adam Button at www.forexlive.com.