December ISM = 57.0

Moe good news for the economy. The December ISM Index came in at 57.0. Last month, it was 56.6.

The ISM is a good economic indicator to follow. I like that it comes out at the beginning of the month and that it’s not endlessly revised like GDP and employment numbers are.

It’s also very simple: If the ISM is over 50, the economy is growing. If it’s below 50, the economy is contracting. The ISM also has a decent track record of dating recession. Whenever the ISM is below 45, there’s a very good chance that the official recession dating committee will call that a recession.

Posted by on January 3rd, 2011 at 10:08 am


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