July ISM = 49.8

The latest ISM number came out this morning and it was 49.8. A reading of greater than 50 means the economy is growing. Less than 50 signals a contraction.

This is the second month in a row that ISM has come in below 50. But this comes after a run of 33 months in a row when ISM had topped 50.

Bear in mind that historically, we’re still well above the danger zone. Recessions usually kick in when the ISM is below 45 or so.

The big news this week is still the jobs report. We got a sneak preview this morning when ADP, the private payrolls folks, said that 163,000 new jobs were added last month. That’s 43,000 more than Wall Street had been expecting. The government reports its jobs numbers on Friday.

So far, Wall Street is in a good mood. The S&P 500 is up a little, but we’re waiting for what the Federal Reserve has to say when their policy statement is released later today. That should come out at 2:15 pm ET.

Posted by on August 1st, 2012 at 10:27 am


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