A few remarks from the ISM report

Quote:
WHAT RESPONDENTS ARE SAYING ...
        "Have received a large volume of price increase notices in the last month with increases between 3 percent to as much as 15 percent." (Chemical Products)
        "Business is good, but higher raw material prices are squeezing margins." (Primary Metals)
        "The heavy truck industry is not recovering as expected. The latest forecast does not show an increase in orders until Q3 2008." (Fabricated Metal Products)
        "General business conditions are slow." (Paper Products)
        "Upward price of raw materials, plus low inventories, is pushing price of resins skyward." (Plastics & Rubber Products)


Looks like raw material prices are starting to become a problem. You might ask over all where are prices impacts the worst.


Quote:
Commodities Up in Price
Caustic Soda (3); Corn-based Products; Corrugated Containers (4); Diesel Fuel; Fuel Surcharges; Gasoline (2); Methanol (3); Natural Gas (2); Oil (2); Packaging (2); Plastic Products (2); Polypropylene Resin (2); Stainless Steel; Steel; and Sulfuric Acid (2).
Commodities Down in Price
No commodities are reported down in price.
Commodities in Short Supply
No commodities are reported in short supply.
Note: The number of consecutive months the commodity is listed is indicated after each item.


The natural progress of things is for liberty to yield and governmnet to gain ground.

Thomas Jefferson