This morning’s NY ISM regional report was another blowout with the headline number coming in at 70. This was a sharp uptick from last month’s reading of 65.6. Optimism is at a 7 month high, but jobs growth slowed as well as input prices (via NY ISM):
“New York City business activity expanded at the fastest pace in seven months, according to the survey taken by the Institute for Supply Management-New York (ISMNY). The Current Business Conditions index rose to 70.0 in December from 65.6 in November.
Future optimism also reached a seven-month high. The Six-Month Outlook index increased to 75.2 in December from 71.9 in November. Purchasing and supply executives shifted volume of spending to neutral. The Quantity of Purchases index came in at 50.0 in December from 53.3 in November. Jobs were added at a slower rate. The Employment index eased to 52.9 in December from 55.6 in November.
Lower input prices were observed for the first time in four months. The Prices Paid index fell to 48.5 in December from 58.9 in November.”
Source: NY ISM
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.