ISM Manufacturing Chart Shows Stunning Recovery In U.S. Manufacturing
The December ISM manufacturing index exceeded expectations (59.7 vs. 58.2), while the new orders subindex hit a 14-yr high.
The ISM Manufacturing Index is based on surveys of more than 300 manufacturing firms by the Institute of Supply Management. … A composite diffusion index monitors conditions in national manufacturing and is based on the data from these surveys.
The website’s chart above compares the ISM manufacturing index to quarterly annualized GDP growth. The two tend to move together. As the chart suggests, the recent strength of the manufacturing index is consistent with very strong GDP growth in the fourth quarter. The market is expecting to see something on the order of 3%, but this chart says it could be 4% or better.
Quite a drastic change from the “below the chart” reading between 2008 and 2010, right?
More charts HERE.