Via Bloomberg:
Robust month-to-month growth for new orders and employment highlight another very strong ISM manufacturing report. New orders held steady at 65.7, a reading well over breakeven 50 and the third in a row over 60. Employment index was last above 60 back in May in 2004. May's reading came in at 59.8 for a 1.3 point gain to indicate significant acceleration in hiring.
Other readings include strength for production, backlogs, export orders and continued delays for deliveries. Input prices continue to show significant pressure. The activity in production appears to be drawing inventories which points to a rising necessity for inventory restocking and a future boost for production and employment.
This report is very positive and should help bolster the optimists who say the U.S. economy is on the mend.
Good news for the U.S. economy. With restocking in full effect, we need to carefully observe consumer behavior (i.e. propensity to buy!). What will happen when Manufacturing firms are fully restocked and retailers cannot take any new orders? Methinks consumer loans is a good place to start digging.
Patrick M. Ambrus
Managing Partner
Analyze Capital LLC
Twitter: AnalyzeCapital
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