Economy

ISM Manufacturing Supports Slow Growth Over Recession

The Institute for Supply Management showed an above-red reading this morning in the manufacturing sector.  This month’s ISM Manufacturing reading came in at 51.6% for September versus 50.6% in August.

Bloomberg was calling for a 50.5 reading, while 50.0 is the Maginot Line between growth and contraction.  Inventories posted a tiny drop to 52.0, indicating that businesses are still running lean on inventory but also still in growth mode. 

New orders rose marginally to 49.6% but that is still barely in the red.  Prices paid rose 0.5 points to 56.0, and the employment component rose by 2 full points to 53.8.

Many will not be excited about the ISM Manufacturing data this morning.  In a world where bad news is dominating the tape, anything green is better than red and this shows that the market pessimism may be more pessimistic than the reality of the economy.

This is just more follow-on data indicating very slow growth rather than a new recession or a double-dip recession.

JON C. OGG

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.