The October ISM Manufacturer PMI was released today with some positive results. The index measures the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry, which surveys about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. It is considered a leading indicator of economic health and an indicator above 50.0 indicates economic expansion, although it has been above 50 since September 2009 or may be even longer and look where we are at. Octobers PMI was forecasted to be 54.2 and the actual headline number was 56.9 beating Septembers number of 54.4.
On the indicators that should be pointing up and to the right, we see positive news for new orders, production and exports.
For the indicators that should be pointing down inventories and imports were looking better, but prices continue to rise which may impact the bottom line or consumption of products due to the consumers inability to digest these higher prices.
No comments:
Post a Comment