The Institute for Supply Management, or ISM, just posted the May reading for manufacturing activity. The reading was 42.8, up from the Bloomberg consensus estimate reading of 42.0 and the prior level was 40.1 in April.
In a different report, the Commerce Department said that Construction Spending also came in better than expected at a reading of +0.8%. Dow Jones had consensus at -0.9%, so this gain is significantly better rather than just a notion of less-bad. The reading for March was revised a tad higher to +0.4% from a +0.3% initial reading.
So far traders and investors have been trying to get where they hope the notion of “less-bad” actually starts turning into positive numbers. It may be too soon to call that universally when we are expecting some 9% unemployment rate this Friday. But this is a start and if it continues it should validate everything we have seen from the equity markets over the last two months.
Jon C. Ogg
June 1, 2009
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