Monument's Quick Hits

Monument’s “Quick Hits” – ISM Manufacturing

David B. Armstrong, CFA Weekly Market Commentary

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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.

ISM Manufacturing


Now here is today’s ISM Non-Manufacturing / Services.

ISM Non-Manufacturing

This shows that today’s ISM Non-Manufacturing was the highest reading since August of 2005.

ISM Services

Here’s a graph of both readings – the thing to note is the recent trending up.

ISM Manufacturing and Non-Manufacturing

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.

GDP Real Growth

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About the Author
David B. Armstrong, CFA

David B. Armstrong, CFA

David B. Armstrong, CFA, is a President and Co-Founder of Monument Wealth Management. Along with his role as the firm’s chief investment strategist and portfolio manager, Armstrong is viewed as an industry leader in several areas including innovative practice management, discretionary asset management, digital marketing and social media. Dave is the writer of Monument Wealth Management's weekly "Off the Wall" Financial Blog and Market Commentary, and is frequently sought after by journalists and event coordinators. Visit his full biography here.

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