Great News from Manufacturers

On April 1 the Institute for Supply Management (ISM) gave us wonderful news. They told us that their purchasing manager’s index (PMI) improved to 59.6 percent in March from an already high 56.5 percent in February.

That was the highest reading since July 2004. If the first quarter levels of the PMI were maintained for a year, the ISM said that would be consistent with real GDP growth of 5.4 percent. Wouldn’t we all love to see that?

There are 18 manufacturing industries included in the ISM survey. Every sector except one (plastics and rubber products) reported growth in March.

Even better news was in the inventories index, which was 55.3 percent. That meant March was the first time, after 46 consecutive months of decline, that manufacturing inventories have expanded. Some ten industries reported higher inventories.

The March employment index was 55.1 percent. There were 13 of the 18 manufacturing industries reporting increased employment last month.

All of these things are indicators of a growing economy. That’s terrific news for sure.

The ISM Delivers a Barnburner Number

On February 1 the Institute of Supply Management told us that their PMI index for manufacturing hit 58.4 percent in January, up from 54.9 percent in December. That index has now risen for six consecutive months after declining for 13 months in a row. Click here to read the full post and comment (Insights subscribers) »

Very Good News from the June PMI

On July 1 the Institute for Supply Management (ISM) reported that its PMI manufacturing index rose to 44.8 percent in June, up from 42.8 in May. While that is the 17th consecutive month of contraction in the manufacturing sector, it is the highest level since the 49.3 percent of August 2008. The index had sunk to a low of 32.9 percent in December 2008. A number below 50 indicates the manufacturing sector is declining. Click here to read the full post and comment (Insights subscribers) »

ISM, Construction & Savings Rate Provide Good News

On June 1, the Institute of Supply Management (ISM) reported its manufacturing index rose to 42.8 percent in May from 40.1 in April. That’s the highest level since the 43.4 of September 2008.

This is very good news because the ISM states that an index above 41.2 is consistent with growth in real GDP. This is despite the fact that the index has to be above 50.0 to indicate that the manufacturing sector is growing. Click here to read the full post and comment (Insights subscribers) »