ISM Index Rises to 60.4

One of my favorite economic indexes is the Institute for Supply Management’s Index. The latest number was just released and it was another very good report:

Conditions for the nation’s manufacturers improved again in April to its highest level since June 2004, the Institute for Supply Management reported Monday. The ISM index jumped to 60.4% in April from 59.6% in March. This is above forecasts. The consensus forecast of estimates collected by MarketWatch was for the index to rise to 60.1%. Readings above 50 indicate expansion. New orders were strong in April and the employment index improved again. Seventeen of 18 industries reported growth in April.

The ISM comes out on the first business day of each month which makes it far more timely than many other economic indicators. Any number above 50 means the economy is growing. Below 50 means it’s contracting.
Historically, the ISM has a very good track record of pinpointing recessions.
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I’m still in the camp that thinks the Fed will raise rates — perhaps not soon, but sooner than most people expect.

Posted by on May 3rd, 2010 at 10:30 am


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