Robust ISM Indicates Invigorated Rebound Will Continue
From Econoday.com
Released on 1/4/2010 10:00:00 AM For Dec, 2008 PriorConsensusConsensus RangeActual ISM Mfg Index - Level53.6 54.8 52.0 to 55.5 55.9
Highlights
Growth in the manufacturing sector is accelerating quickly, according to the ISM report which opens the New Year on a strong economic note. The headline composite index shows solid month-to-month growth in December at 55.9, greater month-to-month growth than the 53.6 reading in November. But the surprise in the report is new orders which, despite a run of very strong gains in prior months, jumped more than 5 points to 65.5. This is exactly where strength in the report should be, pointing as it does to rising activity through the manufacturing sector in the months ahead.
Ongoing production continues to show strong monthly gains, at 61.8 vs. November's 59.9. Delivery times continue to slow, at 56.6 in the month and consistent with the rise in activity. Inventories remain lean at 43.4 and backlogs are unchanged at 50.0. Manufacturers are no longer cutting their workforce with the employment index rising more than 1 point to 52.0. Input prices are rising in further evidence of strength with prices paid jumping more than 6 points to 61.5.
Today's report is surprisingly strong and will lift expectations for first half economic recovery led by the manufacturing sector. Equities and commodities rose in immediate reaction to the report.
Released on 1/4/2010 10:00:00 AM For Dec, 2008 PriorConsensusConsensus RangeActual ISM Mfg Index - Level53.6 54.8 52.0 to 55.5 55.9
Highlights
Growth in the manufacturing sector is accelerating quickly, according to the ISM report which opens the New Year on a strong economic note. The headline composite index shows solid month-to-month growth in December at 55.9, greater month-to-month growth than the 53.6 reading in November. But the surprise in the report is new orders which, despite a run of very strong gains in prior months, jumped more than 5 points to 65.5. This is exactly where strength in the report should be, pointing as it does to rising activity through the manufacturing sector in the months ahead.
Ongoing production continues to show strong monthly gains, at 61.8 vs. November's 59.9. Delivery times continue to slow, at 56.6 in the month and consistent with the rise in activity. Inventories remain lean at 43.4 and backlogs are unchanged at 50.0. Manufacturers are no longer cutting their workforce with the employment index rising more than 1 point to 52.0. Input prices are rising in further evidence of strength with prices paid jumping more than 6 points to 61.5.
Today's report is surprisingly strong and will lift expectations for first half economic recovery led by the manufacturing sector. Equities and commodities rose in immediate reaction to the report.