I got a few email questions from my blog the other day on the ISM Manufacturing reading…and since the ISM Non-Manufacturing (also commonly referred to as ISM Services) came in with a big beat today, I figure I’d tell the story in pictures curated from some twitter feeds. Attributions can be seen in each picture.
First, we have Monday’s ISM Manufacturing, which was discussed in my blog earlier this week. Note “Expected” and “Previous” in addition to the actual reported number.
Now here is today’s ISM Non-Manufacturing / Services.
This shows that today’s ISM Non-Manufacturing was the highest reading since August of 2005.
Here’s a graph of both readings – the thing to note is the recent trending up.
Why is this Important?
Below you can see a chart I created in FactSet today that shows GDP Real Growth year over year in BLUE (right side of chart) and the ISM Manufacturing Index in GREEN (left side of chart). GDP seems to track ISM Manufacturing closely…so with the increase in ISM Manufacturing, it’s reasonable to assume GDP will be tracking up as well.
As I like to say, I like the probabilities here. Look for GDP growth.
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