Kevin Spires, CFA, FRM
The ISM Manufacturing Survey results were reported this morning and the composite was 49.8 for July versus 49.7 in June.
The ISM Manufacturing Survey results were reported this morning and the composite was 49.8 for July versus 49.7 in June.
New Orders also dipped below 50 for the first time during the recovery at 48.0. This is a bit ominous as it implies a contraction in Industrial Production growth could take hold in the next quarter or two. The European Crisis and the looming fiscal cliff in the U.S. are causing weakness to seep into the Manufacturing Surveys.
I am a bit doubtful that this weakness will translate into a broader slump (based on employment, housing, and liquidity indicators), but the sharp contraction in new orders, if extended, would be a strong piece of evidence that a deeper slump was imminent.
I am a bit doubtful that this weakness will translate into a broader slump (based on employment, housing, and liquidity indicators), but the sharp contraction in new orders, if extended, would be a strong piece of evidence that a deeper slump was imminent.
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