ISM = 59.7

The Institute for Supply Management’s manufacturing gauge came out today and it was 59.7. Any reading above 50 indicates an improving economy. This was slightly down from the previous report of 60.4.

As I’ve written before, the ISM is one of the best reports for telling us if the economy is in a recession or not. Historically, the tipping point has been around 44-45. Reading below that have come during recessions, and above we’re in recovery. I continue to believe the Federal Reserve will raise interest rates before most people expect.

Posted by Eddy Elfenbein on June 1st, 2010 at 11:53 am

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