There is little doubt about the recovery in U.S. manufacturing. Despite coming in a bit below expectations, this morning’s ISM data was once again strong. The headline figure of 60.4 (vs expectations of 61) shows another month of expansion in the U.S. economy. The underlying data continues to show strength where it’s most needed. The pace of new orders was very strong at 65.7 and employment rose to 58.5 (which likely bodes well for Friday’s jobs report). On the downside, prices rose to 78 – not a good sign for the easy money crowd. All in all, manufacturing continues its very positive trends.
- “Finances continue to be tight, and we are decreasing safety stock levels to reduce inventory.” (Electrical Equipment, Appliances & Components)
- “Business conditions continue to improve. Actual sales exceeded budget for the third straight month.” (Food, Beverage & Tobacco Products)
- “Demand from automotive manufacturers has continued to improve month over month.” (Fabricated Metal Products)
- “We are finally seeing a turnaround.” (Primary Metals)
- “Upward price pressure still evident.” (Chemical Products)