The May ISM manufacturing report was about in line with expectations, and it didn't change the meme: the manufacturing sector continues to do better than the rest of the economy. As the top chart shows, the current level of the ISM index is consistent with economic growth of at least 2% or better. As the second chart shows, the employment index is actually very high from an historical perspective. So manufacturing continues to expand, and the prospects for future growth remain relatively bright. Nothing to get concerned about here, and no signs of any deterioration.
Automotive News just reported May auto sales at 13.8 million SAAR, easily the worst of the year. Not good news.
ReplyDeleteThank goodness, a sector is doing well! Could increased domestic output of oil and NG be playing a major role is this?
ReplyDeleteAre manufactures beginning to realize that labor costs are not the only considerations in production?
There certainly is much less wage pressures hear in the USA, compared with Red China and elsewhere..In fact, over the past two years, overall wages have declined..
Industrial utilization remains at a depressingly low 78%, which does much to dampen inflation...
THANK YOU FOR THE NEW ROBOT CODES! Much easier to read and write...My cursing has declined by 75%..