ISM Commodities Survey Predicts an Inflation Up Tick

By Douglas A. McIntyre Updated Apr 27, 11:58PM EDT · Published Apr 2, 3:18PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

From Ticker Sense

Besides the higher than expected prices paid index in this morning’s ISM report, another aspect of the report shows that we could be in store for another up tick in inflation. Each month, in the Commodities survey, respondents are asked about the pricing conditions for the commodities they deal with. Namely, are they up in price, down in price, in short supply, or none of the above. As we have highlighted in the past, increases in inflation are often preceded by increases in the number of commodities rising in price, while decreases in the rate of inflation are preceded by respondents noting that more commodities are falling in price than rising.

In this month’s survey, respondents noted increases in thirteen different commodities, with no commodities showing a decline in prices. This marks the highest reading since August of last Summer, and puts the current reading right on the downtrend line from 2004.

Ism_commodities_survey_0307

http://www.tickersense.typepad.com/

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.